In This report we included the Online Loan Application & its verification, Detailed about the Requirements & Explain it with Modelling Including Contextual, UML, Sequence, class, state Machine & Activity Diagram.

1. D
S
S
S
Project
Online loan Application & Verification
System
Member,s Included
Soban Ahmad (036)
Hamza Nazeer (065) Aqeel Hussain (007)
Mehzad Asghar (087) Waqar-ul Malik (050)
BS-SE Section A
Date 27th
Jan 2016

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& Verification System
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Table of Contents
Introduction..................................................................................................................................................4
Current working of System ..........................................................................................................................4
Proposed Working of System.......................................................................................................................4
Automation...............................................................................................................................................4
End-to-end loan cycle management........................................................................................................4
Robust Analytics.......................................................................................................................................4
Sub-ledger Transactions...........................................................................................................................4
Mobile Ready............................................................................................................................................5
Single System of Record...........................................................................................................................5
Perfect for Emergencies...........................................................................................................................5
Convenience .............................................................................................................................................5
Easier Access.............................................................................................................................................5
Lower Rates..............................................................................................................................................5
Numerous Options ...................................................................................................................................6
Round-the-Clock Service..........................................................................................................................6
Saves Time................................................................................................................................................6
High fees and interest rates.....................................................................................................................6
Short repayment course...........................................................................................................................6
Vague terms and condition......................................................................................................................6
Our solution benefits to the current system...............................................................................................7
Functionality of the system .........................................................................................................................8
Description ...................................................................................................................................................8
User current situation ..................................................................................................................................8
Input..........................................................................................................................................................8
Output.......................................................................................................................................................8
Pre-condition ............................................................................................................................................8
Post-condition...........................................................................................................................................8
CNIC...............................................................................................................................................................8
Input..........................................................................................................................................................8
Output.......................................................................................................................................................8
Pre-condition ............................................................................................................................................8

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Post-condition...........................................................................................................................................9
Bank Account................................................................................................................................................9
Input..........................................................................................................................................................9
Output.......................................................................................................................................................9
Pre-conditions...........................................................................................................................................9
Post-Conditions.........................................................................................................................................9
Government Job Holders .............................................................................................................................9
input..........................................................................................................................................................9
Output.......................................................................................................................................................9
Pre-conditions...........................................................................................................................................9
Post conditions..........................................................................................................................................9
Personal Property.......................................................................................................................................10
Input........................................................................................................................................................10
Output.....................................................................................................................................................10
Pre-conditions.........................................................................................................................................10
Post conditions........................................................................................................................................10
Interest .......................................................................................................................................................10
Input........................................................................................................................................................10
Output.....................................................................................................................................................10
Pre-conditions.........................................................................................................................................10
Post-conditions .......................................................................................................................................10
Functionality of the system .......................................................................................................................10
Requirements.............................................................................................................................................10
Input............................................................................................................................................................11
Output.........................................................................................................................................................11
Pre-conditions ............................................................................................................................................11
Post condition.............................................................................................................................................11
Conclusion ..................................................................................................................................................12
Context Diagram.........................................................................................................................................12
Interaction Models......................................................................................................................................13
Use case Diagram ...................................................................................................................................13
Use Case table for online management system....................................................................................13
Sequence diagram..................................................................................................................................14

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Class Diagram .............................................................................................................................................14
Activity Diagram.........................................................................................................................................15
State Diagram.............................................................................................................................................16
States Online Loan System.....................................................................................................................16
Stimulus..................................................................................................................................................16
Description .............................................................................................................................................16

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Online Loan Application & Verification
System
Introduction
Getting a loan is a very tiring and complicated process in Pakistan. It may take weeks even
months for loans to get approved and people have to visit the loan office again and again for
document and verification. Here our proposed project automates the loan process from both,
bankers as well as customer’s side. Here customers may see various loans provided along with
rate of interest and required documents.
Current working of System
Here once the customer fills basic enquiry form, it reaches the bank server so he gets a login id
password. The server administrator now can check it and select whether to go forward or reject
the candidate. If he needs to go forward the banker may select to send customer to next stage.
Now the customer gets stage 1 approval and needs to upload his scanned documents to the site
through his login. Once the documents are submitted they are cross verified at the server and
reply is sent to server. The system server also gets the person location and his image secretly by
tracking the computer through which he submits documents to the bank server needed for bank
verification. The bank may now cross verify customer details and also request extra documents
by sending online alerts to the customer email. The customer just needs to upload needed
documents online and can also track loan status. He gets a Message verification as once his loan
has been approved from confirming the process.
Proposed Working of System
Following are some specification we think to be proposed in our current system.
Automation
It has to sets automatic payment alerts and notifications.
End-to-end loan cycle management
It must be turnaround time across all customer interaction channels with a 360 degree view of
customer across organization.
Robust Analytics
Real-time analytics, customized reports and dashboards based on user preference.
Sub-ledger Transactions
Real time online updates of transactions that can be integrated with region- specific external
accounting system based on local regulations.

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Mobile Ready
Integrates loan servicing and repayment with mobile platforms and mobile payment gateway
integration (mPesa).
Single System of Record
Provides a single source of truth for any loan, anytime and anywhere.
Advantages of online loan
Perfect for Emergencies
Most people try to plan their expenses but there are things it’s impossible to foresee. Sometimes
consumers need to borrow money really quickly and they can’t wait until one of traditional loan
lenders approves their loan application. Online loans perfectly suit for financial emergencies
because getting them may take less than an hour. Another important point is that you don’t have
to explain why you need the money so you can just use it the way you want.
Convenience
One of the greatest factors for selecting an online personal loan over a traditional loan is
convenience. The process is as simple as applying for a personal loan from the comfort of your
home by filling out an online form and being quickly approved. All dealings with the lender occur
online so you do not need to make multiple trips to the bank to discuss the loan with an
employee.
Easier Access
With the global economic downtown, banks have become considerably picky with regards to
lending. Online loan services are not as picky thus allowing you to get approved for a loan easier,
given the right credit score. You can get a loan even if you have low credit score or have no credit
history at all. That’s the reason why online lending is so much in demand.
Lower Rates
In most states payday lenders can charge only certain interest rates. This industry is strictly
regulated and sometimes an amount of loan applications is limited. Such things intended to
protect consumers from misusing personal loans. Reputable lenders provide all the important
information concerning a loan you’re going to take out so you know exactly the cost of the loan
and the interest charged. Additionally, the majority of personal loans are unsecured so no
collateral is required to be approved for the loan. Depending on the situation, this can mean
higher interest rates due to higher risk by the lender.

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Numerous Options
There are many websites offering unsecured personal loans so consumers have an impressive
choice. Before making a decision to apply to one or another loan provider you can shop around
and compare interest rates charged by different lenders but don’t forget that it’s worth dealing
only with trustworthy ones.
Round-the-Clock Service
Sometimes a money need comes at non-convenient time, for example, late at night when
traditional financial institutions are closed. You don’t have to wait until its open because you can
get an online loan any time you need it. And there is no need to go somewhere because a laptop
and the Internet access is all you need to fill a loan application.
Saves Time
Getting approved online is quick and easy. This saves a significant amount of time and effort. Pre-
approval typically takes a few minutes based on Internet speeds. On the other hand, getting a
traditional pre-approval could take an entire day of driving between lenders and personally
talking to each one which takes more time.Online personal loans provided by
PersonalMoneyService deliver no headaches, allow for many different options for the borrower,
save time and money and are much more pleasant experience overall. When searching for a
personal loan, it is always beneficial to consider all options to ensure you get the best rate that
fits your budget.
Disadvantages of online loan:
High fees and interest rates
Professionals would advise you not to get this loan, unless the need is urgent. Online loans have
higher interest rates and fees, compared to normal loans. Aside from the high interest rates and
fees that you have to pay as you apply for the online. You will also have to pay a fee if you are
late in your payment. Most late repayment fees that are charged by online lenders are quite great
that they can reach up to double or triple the amount that you have borrowed.
Short repayment course –
Normal loans from banks and other institutions can give you a repayment plan that divides your
debt payment in a long span of time. Repayment can be done within the span of a year or two
when getting a normal loan. An online loan however, requires you to settle your debt within a
shorter span of time. it can be within two weeks or a couple of months.
Vague terms and condition
statement - In some loan services, there may be certain terms and conditions that place you in a
high risk situation. This is often intentionally hidden or made unclear, since they don't want you

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to know about it.Although useful, there are things that you need to take into consideration
before getting an online loan application. You should always weigh the pros and cons before
deciding on anything. & many other.
Our solution benefits to the current system
Historically, if you needed a car loan, home improvement loan or a way to consolidate credit
cards, you put on your nicest suit and headed down to the local bank to request money then you
have to wait in queues for withdrawal. Luckily, the Internet has made this process much easier.
Online personal loans are readily available to eliminate the hassle of applying for a loan and you
can apply comfortable you as. Also, there are many sites that offer personal loans that have
further changed the lending and borrowing system. The popularity of online loans is rapidly
increasing with online loan services granting billions of dollars. PersonalMoneyService offers
online loans to satisfy our consumers’ needs and demands. Learn more about benefits of online
personal loans and the way these credit products can help to improve your finances.

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Online Loan System
Functionality of the system
Check requirements of the users & provide online loan.
Description
Our program wants the users current situation that why he needs money for further process.
Furthermore, this program stores CNIC & Bank account no of the user for securing the
transaction. Our user has to provide some guarantee (govt Job holder of some person’s property)
on behave of which we can pay loan to them. As per policy of our system or program attach 7%
of interest on whatever the credit wants.
User current situation
Input
For what purpose he needs loan & how much loan he needs, is he able to return the loan back
within time according to loan policies.
Output
Verify the user’s information according to our loan policies if he able to fulfill the policy the we
further proceed the loan requirements.
Pre-condition
If he agrees with our loan policies & fulfills all the requirement according to our policy the his
request is proceed.
Post-condition
To verify that he must return the loan according to the loan requirements
CNIC
Input
Government CNIC number, name on CNIC, address on CNIC, Gender on CNIC
Output
Verify the user’s information according to our loan policies if he able to fulfill the policy the we
further proceed the loan requirements.
Pre-condition
Users must have a CNIC for further proceed.

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Post-condition
After verifying users CNIC if it is legal then we proceed & if it’s not our system cancel the
transaction.
Bank Account
Input
Bank account
User account must be in government bank.
User must provide the bank documents for completing the process.
Output
Verify the user’s information according to our loan policies if he able to fulfill the policy the we
further proceed the loan requirements.
Pre-conditions
Users must have a government bank account.
Post-Conditions
Verifying user’s bank account if it is fulfill the policy then proceed & if it’s not our system cancel
the transection.
Government Job Holders
input
User jobs institution
Users salary must be 25,000 minimum.
Name of institution
Output
Verify the user’s information according to our loan policies if he able to fulfill the policy the we
further proceed the loan requirements.
Pre-conditions
User must have a permanent source of income.
Post conditions
Verifying users job description & his salary if it is fulfilling the policy then proceed & if it’s not our
system cancel the transaction.

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Personal Property
Input
Users must have a property that is under the government & if he runs away or not pay his loan,
on which we claim.
Output
Verify the user’s information according to our loan policies if he able to fulfill the policy the we
further proceed the loan requirements.
Pre-conditions
Users must have some personal property under the government.
Post conditions
Verifying user’s property if it is fulfilling the policy then proceed & if it’s not our system cancel
the transaction.
Interest
Input
We add 7% of interest on whatever the credit users want.
Output
According to our loan policies we take 7% interest on every installment.
Pre-conditions
It is compulsory for user to pay the interest & Users must agree our interest policy.
Post-conditions
If user is not paying the interest, then we claim his property to get our interest.
Functionality of the system
Check requirements of the users & provide online loan.
Requirements
Our program wants the user’s current situation that why he needs money for further process.
Furthermore, this program stores CNIC & Bank account no of the user for securing the
transaction. Our user has to provide some guarantee (govt Job holder of some person’s property)
on behave of which we can pay loan to them. As per policy of our system or program attach 7%
of interest on whatever the credit wants.

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Input
(Online Loan System) Figure 1
Output
Check all information online & provide loan.
Pre-conditions
Our program verified that the all the information given by the user Is correct or authorized, if it
is then it program send the information to further processing.
Post condition
Post conditions will be that our system run well for future requirements. If any user wants any
modification it can be easily done.

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Conclusion
We want to make loan system easy better & quick for everyone, that’s why we created online
loan system management we created this system according to the needs of the user with this a
person can easily avail the services of loan without any hassles.
Modeling for Online Loan
Management System & its Verification
Context Diagram
(Online Loan System) Figure 2

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Interaction Models
Use case Diagram
(Online loan System) Figure 3
Use Case table for online management system
Actor Applicant, loan verifier, loan evaluator, loan collector
Description An applicant request for a loan. After request loan verifier verified its
documents and transfer to loan evaluator then loan evaluator may approve or
reject the loan.
Data Applicant personal information and its documents.
Stimulus User command issued by online loan and application (OLS).
Response Loan may be approved or may be rejected.
Comments Improve installment policy.

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Sequence diagram
Class Diagram
(Online Loan System) Figure 5
( (Online Loan System) Figure 4

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Activity Diagram
(Online Loan System) Figure 6

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State Diagram
(Online Loan System) Figure 7
States Online Loan System
Stimulus Description
State Applicant request for loan
Loan Verifier Loan verifier verify the documents and forward the details to loan evaluator for
approval or rejection.
Loan evaluator Loan evaluator approve the loan if documents are cleared and reject the loan if
documents are not cleared.
Report Deliver Report is delivered to the applicant according to their status.
Installments If loan is approved then applicant will pay the instalments according to loan policy.