This is to certify that the work being presented in the project entitled “SHYLOCKING MANAGEMENT SYSTEM”

CHAPTER ONE 1 INTRODUCTION 1.1 Background A shylock is someone who lends money at excessive rates of interest (WordWeb Dictionary). Therefore, Shylocking involves a complex analysis and risk taking of lending money. Common practice is by recording the clients’ information in a record book. Clients’ information is obtained from the registration form which they have to complete when they registered for the first time. This practice has some weaknesses such as the longer time to search the client’s profile, the possibility of misplacement of record book and vulnerability of client record to be accessed by unauthorized person. In most Kenyan shylocking, several assessments are prepared to evaluate client’s qualification for a specific soft loan .Types of assessments that are common to all the shylocks are done at any given time of the year. At the end of a given period of time, the client is expected to repay that loan with a certain interest. The most problem gives in when it comes in determining the amount of interest to be charged at a certain period. These tasks will be much easier if all calculations can be automatically done when the shylock enter item value, duration in which loan is to be completed into a system. 1.2 Problem statement Many shylocks have their own system to manage clients profile and assessments. At the moment there exist many different systems for managing these outlets which are mainly manual records keeping. The problem associated with these manual systems are beyond the level to be assumed. Some of the problems in the old systems in analyzing the credit worthiness of clients, difficult in determining the loan to be extended to a client basing on the value of the item provided as security and determining interest to be charged basing on the amount of loan extended. Also it is not easy to determine the period to be given to client to clear his/her loan basing on the amount extended, records tracking of payment done by particular client for settlement of loan, determining items not claimed, and their disposal prices in order to recover the bad debts. Due to these challenges of the old system, there is need of common system to manage shylocking business. 1.3 Broad objective. The goal of this project is to develop a system that will be used by loan sharks to keep records of clients’ details, loan that they have secured and security item provided by an individual client. 1.4 Objectives. (i) To ensure that the data contained in the system will be both accurate and consistent. (ii) To improve accuracies when calculating loan to be extended to the client. (iii) To be able to determine items not claimed, and their disposal prices in order to recover bad loans. (iv) The system provides mechanism that only authorized people will have access to confidential data. The system administrator will ensure that proper access procedures are followed including proper authentication schemes process that the system and additional checks before permitting access to sensitive data. 1.5 Justification. (i) More profits will be realized because of an increase transactions in a day and elimination of losses incurred due to inaccuracies. (ii) There will be clear and defined ways in calculating interests and how they are settled. (iii) It takes a lot of time to calculate client’s total loan securable basing on the value of the item of the client hence time management will be improved. (iv) For a client to secure 2nd loan, he/she must have settled the 1st loan which is very hard to identify manually. 1.6 Scope of the study. The scope of the project is that it involves shylock whose role will be offering soft loans, client who will be borrowing loan from the shylock and an auctioneer who will be buying goods that are unclaimed. 1.7 Limitations of the study. Time factor was the greatest barrier to the successful completion of this exercise since it had to be done within the semester.