Loan Management System with Smart Contract using Blockchain Technology

Authors: Avantika Andhale, Pooja Murkute, Nikita Saundane, Tejal Gaikar, Sharad Rokade

Country: India

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Abstract: The most shocking events were was the recent discovery of the fraudulent activities in the Punjab National Bank. This is due to frequent systemic failures that detect human errors. Blockchain technology is the greatest solution for this issue. It is surprisingly common for the information settlement mechanism like SWIFT to be on a isolated ledger from the payment settlement mechanism. If the banks uses a ledger that stores information settlement distributed across all the participants, then the fraudulent user may reflect on all the available participants in the transactions, auditors and regulators. Our Paper is a Decentralised Loan Management Web Application (DApp) built on Ethereum blockchain which targets on preventing such fraudulent attacks on Loans sanctions by decentralising the processes. The security features authentication of the user identity, authentication of bank officials and multiple levels of verification of details are implemented using Public Key Infrastructure (PKI). Financial institutions have made lives easier for a lot of individuals and organizations that would earlier use to face capital shortage now and then. Therefore, it becomes necessary to make the financial systems more reliable, secure, time-conserving, and cost-effective. Although several approaches have already been proposed, all of these tend to fail on at least one of the key features. Current financial loan management systems are usually deployed in a singleservice mode, also the transactions are not transparent and traceable to most of the roles participating in the process. Their data privacy protection mechanisms are not robust enough facing various cyber attacks. To overcome these challenges, we propose loan on blockchain (LoC), a novel financial loan management system based on smart contracts. We introduce digital signature and oracle to protect the data privacy.

Keywords: BlockChain, Loan Management System, User Privacy, Smart Contracts

Paper Id: 230537

Published On: 2024-03-31

Published In: Volume 12, Issue 2, March-April 2024

Cite This: Loan Management System with Smart Contract using Blockchain Technology - Avantika Andhale, Pooja Murkute, Nikita Saundane, Tejal Gaikar, Sharad Rokade - IJIRMPS Volume 12, Issue 2, March-April 2024.

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