The financial sector has spent significant resources in recent years developing internal models to better evaluate financial risks and accumulate economic capital. Bank regulators have backed and recognized these initiatives. Banks have gradually expanded their operations to include the provision of loans to suitable consumers. The loans are given out based on particular requirements, such as collateral and other variables, such as determining whether the customer is creditworthy or looking at the customer’s pay structure. The customer seeking a loan offer from the bank must clearly meet these tight standards or they will not be qualified for the loan they are requesting. A computerized loan management system for rejecting or approving loan requests was investigated in this study. The goal of this study is to develop a computerized loan management system for rejecting or granting loan requests based on credit risk and evaluation models, in order to address the tremendous issues that financial institutions confront when it comes to loan approval. The concept of banks giving out loans was well understood, and the benefits and drawbacks were determined, which aided in the development of a system to satisfy credit risk and evaluation models. When banks analyze consumer loan requests, the computerized system will reduce risk by automatically determining if the customer is loan worthy or not. The newly designed system is automated, efficient, comprehensive, and interactive, and it reduces credit risk for the financial institution.
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