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CHAPTER ONE
1.1
INTRODUCTION
Loan service for small organizations and individuals was
initiated after a number of considerations on the banking system.
Major Banks are mainly guided by financial profit for their
shareholders. They are after the minimization of financial risks. Such
strategies don’t leave much room for people on low income or even
small organizations that strive for their survival.
This research studied the loan disbursement control system
used in Bank PHB Enugu. Loans are readily given to people who have
an account (mostly current account). In Bank PHB, apart from being a
customer of the bank, conditions may include: provision of collateral
security, providing at least one guarantor and filling the bank loan
management form. The collateral security must be a landed property
before the bank can accept it. Also, the guarantor must have an
account in that bank and must be a reputable person in the society.
The role of computers in loan management can never be over
emphasized. The computerized loan disbursement control system
enables the bank staff to work without stress. Information can be
updated as soon as positive change occurs, the interest charged on the
loan as well as the updating of information as soon as they are
received.
I therefore recommend this project to all who may like to have a
loan in a bank, because that is what the topic is all about. The research
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work will enable them know the importance of computerization in
loan management which yield fruitful result as that of other fields of
human endeavor.
1.2
BACKGROUND OF THE STUDY
Bank PHB was formed in 2005 by the merger between
Platinum Bank Plc and Habib Nigeria Bank Plc. Since its
inception, the bank has pursued a strategy of expansion by the
acquisition and creation of subsidiaries within and outside its
home country of Nigeria.
Bank PHB is a full service financial services institution
offering corporate financing, retail banking, consumer and
project financing, loan syndication, correspondent banking,
discount brokerage, securities trading and others.
However, the bank’s primary focus is retail banking. Our focus
shall be loan syndication. Below is an organizational chart of
their Enugu branch which we shall be working with.
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1.3
ORGANIZATIONAL CHART STRUCTURE
Assistant
General
Manager
Principal
Manager
Manager
Legal
Manager
Internal
Control
Deputy
Manager
Cash
Deputy
Manager
Property
Support
Staff
Submanager
system
admin
Senior
manager
/SPD
Assistant
Manager
Mkt/proto
col
Deputy
Manager
Account
Sub –
manager
Account
Official
account
Support
Staff
Senior
manager
Admin
Assistant
Manager
Admin
Support
staff
Senior
Manager
SPAD
Senior
manager
/SPD
Assistant
Manager
SPD
Support
Staff
Officer
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PSD
Support
Staff
Supp
Staff
Fig 1:Organogram
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1.4
STATEMENT OF THE PROBLEM
The events of loan management and control system have been documented.
This research will evaluate the perceived motion of computerized loan
disbursement control system. In doing so, attempts will be made to answer the
following questions.

How can a computerized loan disbursement control system be
implemented?

What steps are taken in the design of a computerized loan
disbursement control system?

What are the implications of not meeting the above requirements?

How far have the computerized loan disbursement control system
gone in achieving the desired goals?
1.5
OBJECTIVES OF THE STUDY
This project will have the following aims and objectives.
 To suggest the ways in which a computerized loan disbursement
control system can be enhanced
 To shed light on the issue of computerized loan disbursement
control system.
1.6
SIGNIFICANCE OF THE STUDY
This study is very critical because it will be of great relevance towards the
improvements of the loan control services given to customers of the bank.
This work is going to be of great benefit to Bank PHB Enugu by improving
their loan disbursement control system as well as reducing the risks that are
encountered when granting loans to customers. Other banks and financial
institutions with their view of improving their loan management control system are
not left out of these benefits.
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Also, students of banking and finance will benefit from this study which will
go a long way in broadening their knowledge in their discipline.
1.7
PURPOSE OF THE STUDY
The purpose of this study is to dock the normal difficulties associated with
the Bank PHB loan disbursement control system. As the loan management is
done by man, irregularities are bound to be associated with it. If the loan
management and control system are effectively carried out with the
computer system, it will yield fruitful results.
1.8
SCOPE OF THE STUDY
This research work will access the design and implementation of a
computerized loan disbursement control system in Bank PHB Enugu. It will look
into the operations of this bank in the aspect of loan management, the interest
charged on loan as well as the updating of information as soon as they are
received.
1.9
LIMITATIONS OF THE STUDY
This project will be limited to the data available at hand; data outside the
research area will not be made use of. The limitations militating against this
research are financial constraints, time factor and other circumstances.
1.10 ASSUMPTION OF THE STUDY
Accuracy, efficiency, and reliability are associated with computerized loan
disbursement control system. For the purpose of this research, my assumptions can
be stated as follows:
 The application of computers in loan disbursement control system had
led most banks to business expansion and development projects.
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 Computerized loan disbursement control system loads to fast, accurate
and concise deals.
1.11 DEFINITION OF TERMS / VARIABLES
A
LOAN: This is money lent to an individual or an organization on interest
payable at a stipulated time.
B
MANAGEMENT: These are a group of persons controlling a business.
C.
LOAN MANAGEMENT: This is when the group of persons controlling a
business creates and enforces policies on the disbursement of loans to an
individual, a group or an organization.
D.
INTEREST: This is money paid on the use of money lent to an individual, or
an organization. It is simply the amount charged on loan.
E.
LOAN SCHEME: A plan or management on steps to take while loaning
money to an individual, a group or an organization.
F.
COLLATERAL SECURITY: This is a property e.g. stocks or bonds,
pledged as security for repayment of a loan.
G.
GUARANTOR: One who supports a borrower by making sure that he/she
pays back at/on the stipulated time/date.
H.
ACCOUNT: Statement of money paid received
I.
DISBURSEMENT: This is a process where the loan amount is paid into the
borrowers account