Loan Management System ER Diagram | Entity Relationship Diagram

The ER diagram for loan management system shows the relationships of the loan management entities within its database. This describes the logical structure of the system’s database or data storage. It is done by identifying the loan management process entities, their properties, and the interactions between them.

The database design is sketched out using loan management system ER diagrams. This database sketch becomes the actual basis of the system’s data storage that will serve as data destination and source.

Loan Management System ER Diagram: Details

The table shows the overall description of the ER Diagram for Loan Management System. It has a complete overview of the project’s information.

Name:Loan Management System ER Diagram
Abstract:The loan management system ER diagram depicts the relationship between various entities. It can be thought of as a blueprint for your system (project) structure. 
Diagram:ER Diagram is also known as Entity Relationship Diagram
Tools Used:Diagraming tools that provide ER diagram symbols.
Users:Lending Companies, Admin, Members, and Clients.
Loan Management SystemER Diagram: Details

What is Loan Management System?

The entire loan lifecycle is automated via an online loan management system. Lenders might use it for the entire process or just certain sections of it. The system provides assistance at every level, from processing new customer information to collection management.

It’s a digital platform that automates the entire loan lifecycle, from application to close. The traditional loan management procedure is precise and time-consuming, requiring the gathering and verification of information about applicants, their reliability, and their credibility.

Bank Management System ER Diagram |...
Bank Management System ER Diagram | Free Entity Relationship Diagrams

What is an ER Diagram?

In DBMS, the ER Diagram is referred to as the loan management system database design. This ER Diagram is the graphical depiction of relationships between all the entities involved in the system. Its major components are Entities, Attributes, and Relationships.

To build and troubleshoot relational databases, the loan management system ER Diagram is used. It works best with DFD (Data Flow Diagram), which is responsible for data movement. Developing the loan management system database design would be much easier with the help of ER diagram.

Importance of ER Diagram

The importance of ER diagram for loan management system is to help in modeling its data storage or database. It is the basis of the project’s database foundation for construction. This entity-relationship diagram (ERD) also aids in defining the data types to be stored such as their attributes and characteristics.

In addition to that, the ER Diagram also describes how an entity interacts with other entities. All other real-world projects are presented with ER Diagrams (database designs). To display the details and attributes of a data store, the er diagram for loan management system is used in conjunction with its data flow diagram. They are very important in building a relational database because they let us visualize how data is connected generically.

Entity-relationship diagrams are utilized in software engineering during the planning phase of software development. It aids in the identification of various system constituents and their interrelationships. Loan Management System ER Diagram is also used as the foundation of the loan management DFD (Dataflow Diagram).

Loan Management System Database Design

This Loan Management system database was made based on loan management requirements. The system can encode the debtors’ information upon the transaction. The admin can have access to the debtors’ status as well as their transactions. They can handle the data needed in managing information and records the request made by the client/debtor.

The features included in the system ER diagram were the security and monitoring of the lending/bank information and debtors’ information status. These features were also listed and recorded in reports that served as the history of transactions done in the system.

Entity Relationship Diagram for Loan Management System

ER Diagram of Student Registration System shows the system entity relationships in each entity and their supposed functions in each relationship.

Loan Management System ER Diagram
Loan Management System ER Diagram

Based on the image above, the ER diagram for this System is the entity of the Loan Management system database, which is presented by tables; debtor, loan information, payment information, loan transactions, loan offers, and reports.

The tables are made to meet the required specification of the system and provide much more specific details of each entity within the system.

Loan Management System ER Diagram Tables

These tables below provide the complete database table details such as Field NameDescriptionsdata types, and character lengths. Each of these tables represents the characteristics and the attributes of data storage.

The field column presents the names of each database’s attributes, the description column gives the complete thought of each attribute, the type column is their data type and the length is for their character lengths.

Table Name: Debtor

debtor_ID (PK)Debtor’s IDInt11
fnameDebtor’s First NameVarchar255
lnameDebtor’s Last NameVarchar255
contact_numberDebtor’s ContactInt11
addressDebtor’s AddressText
ageDebtor’s AgeInt11
genderDebtor’s GenderVarchar255
Table Name: Debtor

Table Name: Loan Offers

loan_ID (PK)Loan IDInt11
loan_nameLoan NameVarchar255
amountLoan AmountVarchar255
loan_rangeRange of loanText
interestLoan InterestVarchar255
Table Name: Loan Offers

Table Name: Loan Transactions

transaction_ID (PK)Employee IDInt11
debtor_ID (FK)Debtor’s IDVarchar30
dateDate of Loan RequestDate
purposeLoan PurposeText
Table Name: Loan Transactions

Table Name: Loan Information

info_ID (PK)Information IDInt11
debtor_ID (FK)Debtor IDInt11
loan_dateDate of LoanDate
loan_dueDue Date of Loan Date
payment_rangeRange of the PaymentInt11
Table Name: Loan Information

Table Name: Payment Information

payment_ID (PK)Payment IDInt11
info_ID (FK)Information IDInt11
pay_amountPayment AmountDate
payment_dateDate of PaymentTime
debtor_IDDebtor’s IDInt11
Table Name: Payment Information

Table Name: Reports

report_ID (PK)Report IDInt11
debtor_ID (FK)Debtor’s IdInt11
loan_ID (FK)Loan IDInt11
info_ID (FK)Info_IDInt11
payment_ID (FK)Payment IDInt11
dateDate of ReportDate
Table Name: Reports

The tables given will be the basis for developers on how would they do the loan management system database design. It has the complete description of the database and they will put this into the program or data storage the same as the names given to each of the tables. They will create a database with the attributes given as well as the value of each attribute.

Loan Management System ER Diagram [PDF]

The ER Diagram for Loan Management System in DBMS PDF provides the information explaining the concepts of the project database. You may apply this information to your capstone project. You can also use it directly or modify its content depending on your project’s requirements.

How to create ER Diagram

Time needed: 5 minutes.

Steps in building the ER Diagram for Loan Management System with Cardinality Ratio.

  • Step 1: Familiarize the ER Diagram (Entity Relationship Diagram) Symbols and Cardinality

    Entity Relationship Diagram – shows the structure of data types in a project. It uses symbols to clarify its parts and relationships. Their symbols and applications must be familiarized before you build the ER Diagram.

    ER Diagram Symbols:
    Field – are the parts of a table that define the entity’s characteristics. In the database that the ERD models, attributes are commonly thought of as rows.
    Keys – is a technique to categorize data qualities. It is used to organize ER diagrams and assist users in modeling their databases to ensure that they are efficient. This is also used to connect different tables in a database.
    – Primary Key: identifies a single entity instance which means a unique attribute or set of attributes.
    – Foreign Key: is produced when data attributes have one too many relationships with other entities.

    ER Diagram Cardinalities:
    The styling of a line and its termination demonstrates cardinality and ordinality.
    The greatest number of times an instance of one thing can be related to instances of another entity is referred to as cardinality.
    While Ordinality refers to the fewest number of times a single entity instance can be linked to another.

  • Step 2: Finalize the entities included

    Start designing your ER Diagram by finalizing the entities that must be included in your loan management system. This entity is represented by a rectangle, and you’ll want to leave plenty of room for them in future phases so you may add them to your design.

    An entity set is a group of similar entities with shared properties. A table or a table’s attribute is an entity in a database management system. As a result, by depicting relationships between tables and their characteristics, an ER diagram displays the whole logical structure of a database.

  • Step 3: Add the attributes of each entity

    After finalizing the entities, think about the qualities you’ll need to characterize each entity. The details of the various entities outlined in a conceptual ER diagram are supplied as attributes. Characteristics of an entity, a many-to-many relationship, or a one-to-one relationship are all examples of attributes. Multivalued attributes can be assigned to several values.

    The entity’s attributes were represented by ovals and can be seen in the tables of the loan management system er diagram. These attributes can be a primary key or a foreign key in the database design of the project. Yoy ER diagram design could also be converted to the database of the system by declaring your right entities and their attributes.

  • Step 4: Describe the relationships (cardinality) between entities and attributes

    To plot relationships between the ERD you will need the entities, their attributes, and relationships. You will base the data structure from the evaluated information to have the exact Entity Relationship Diagram.

    A relationship is an association that describes how two entities interact. At the connector’s endpoints, the cardinality is indicated by a crow’s foot. One-to-one, one-to-many, and many-to-many are the three most common cardinal relationships. It’s the maximum number of times an instance of one entity can be linked to instances of another entity.


You need to know the diagrams used to design and develop the Loan Management System. That is to help you create a fully-functional system with the use of ER Diagram. Creating it will help you perceive the back end of the software. This will hold all the data that’ll enter and exit the system.

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