ER Diagram for Loan Management System

The loan management system ER diagrams 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.

What is an ER Diagram?

Entity Relationship Diagrams (ER Diagrams) depict how “entities” in a system relate to each other. ER Diagrams are used to construct or fix relational databases in software engineering, BIS, teaching, and research.

ERDs or ER Models use rectangles, diamonds, ovals, and connecting lines to depict how entities, relationships, and attributes are related. Entities are nouns and relationships are verbs, just like in real language.

Importance of ER Diagram

Entity relationship diagrams are a visual way to start designing a database. They can also be used to help figure out what an organization’s information system needs are.

Loan Management System Database Design

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

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

This system’s ER diagram is the database entity, which comprises debtor, loan, payment, transaction, offer, and report tables. The tables meet the system’s requirements and provide detailed information about each entity.

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.

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.

  • Step 2: Finalize the entities included

    Start designing your ER Diagram by finalizing the entities that must be included in your loan management system. You should leave plenty of room for this rectangle in future phases so you can add it to your design.

  • 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.

  • 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.


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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