A Microfinance loan management system
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The need for better decision management has opened up an avenue for Microfinance Institutions (MFIs) to explore and devise means of developing systems that can be used to make their management process better so as to beat the cutthroat competition in the financial sector. This study was conducted to establish and document the implications of developing a computerized Microfinance Loan Management System for the MFIs in Uganda. The study particularly sought to improve the availability of information and other services offered by MFIs to be much quicker, reliable and cost-effective following the limitations of the existing loan management system. The main objective of this study was to identify the weaknesses of the existing loan management system used so as to develop an improved loan management system that would overcome the observed shortcomings. Although institutions have different systems, there are variables that are similar among them due to the nature of their services. In the methodology of this study, data was obtained through interviews and questionnaires as well as by using various archive sources. For this to happen, some staff members of different MFIs were interviewed and questioned. The content of the data flows and data stores is given in the data dictionary. The system will determine the loan interest payments among other functions. The system in question was implemented by following the three-tier client-server architecture to implement the inference mechanism while the database component was implemented using PHP programming language and MySQL, a relational database management system. The user interface was implemented using HTML and PHP. The system helps users (loans officers) to store, read, update, modify and delete loan data. The development used the Rapid Application Development (RAD) Model under the System Development Life Cycle (SDLC). Despite its shortcomings, the system that has been developed will enable managers perform their work a lot faster and more accurately and it is therefore recommended that all MFIs use the computerized Microfinance Loan Management System for proper loan management in their business.