LendingSystem

A comprehensive peer-to-peer lending platform with advanced credit scoring and risk assessment built with Python Flask.

Features

Core Functionality

• User Authentication: Secure registration and login system with role-based access control
• Credit Assessment: Comprehensive credit application system with real-time scoring
• Risk-Based Lending: Dynamic loan limits and interest rates based on creditworthiness
• Loan Workflow: Complete application process from credit check to loan approval
• Payment Management: Advanced payment processing with detailed transaction history
• Borrower Management: Professional borrower dashboard with payment analytics

Advanced Features

• Credit Scoring Algorithm: Proprietary scoring system based on:
  • Annual income and employment status
  • Debt-to-income ratio calculations
  • Credit history and previous defaults
  • Bank account balance and existing loans
• Dynamic Interest Rates: Credit score-based pricing (3.5% - 15% APR)
• Loan Limits: Tiered limits from $5,000 to $50,000 based on credit score
• Real-time Calculations: Live loan payment previews and amortization schedules
• Collateral Management: Required for loans over $10,000
• Professional UI: Modern sidebar navigation with responsive Bootstrap 5 design

Administrative Tools

• Admin Dashboard: Comprehensive system oversight and loan approval workflow
• Borrower Analytics: Detailed borrower profiles with payment statistics
• Financial Reports: System-wide lending and payment analytics
• User Management: Complete user administration with role management

Technologies Used

• Backend: Python Flask with SQLAlchemy ORM
• Database: SQLite (production-ready for PostgreSQL/MySQL)
• Authentication: Flask-Login with secure session management
• Frontend: Bootstrap 5, HTML5, CSS3, JavaScript
• UI Components: Bootstrap Icons, responsive design patterns
• Data Processing: Decimal precision for financial calculations
• Form Validation: Client-side and server-side validation with error handling

Installation

1. Clone the repository:

git clone https://github.com/regolet/LendingSystem.git
cd LendingSystem

2. Create a virtual environment:

python -m venv venv

3. Activate the virtual environment:

• Windows:

venv\Scripts\activate

• macOS/Linux:

source venv/bin/activate

4. Install dependencies:

pip install -r requirements.txt

5. Initialize the database:

python -c "from app import app, db, User; app.app_context().push(); db.create_all(); admin = User(username='admin', email='admin@example.com', full_name='Administrator', is_admin=True); admin.set_password('admin123'); db.session.add(admin); db.session.commit(); print('Database initialized with admin user')"

6. Run the application:

python app.py

The application will be available at http://localhost:5000

Default Admin Account

• Username: admin
• Password: admin123
• Email: admin@example.com

Important: Change the default admin password after first login in a production environment.

Usage

Credit Assessment & Loan Application Process

For Borrowers:

1. Register & Login: Create account and login to access the lending platform
2. Credit Application: Complete comprehensive credit assessment including:
   • Annual income and employment details
   • Monthly housing and debt payments
   • Bank account balance and existing loans
   • Credit history information
3. Credit Score: Receive instant credit score calculation (300-850 range)
4. Loan Application: Apply for loans with credit-based limits:
   • Excellent Credit (750+): Up to $50,000 at 3.5-5% APR
   • Good Credit (700-749): Up to $25,000 at 5-7% APR
   • Fair Credit (650-699): Up to $15,000 at 7-10% APR
   • Poor Credit (<650): Up to $5,000 at 10-15% APR
5. Collateral: Provide collateral details for loans over $10,000
6. Real-time Calculations: View monthly payments, total interest, and repayment schedule
7. Payment Management: Make payments and track detailed payment history

For Lenders & Admins:

1. Loan Review: Review submitted loan applications with credit scores and risk assessments
2. Borrower Analytics: Access detailed borrower profiles with payment statistics
3. Risk Management: Monitor loans with automated overdue tracking
4. Financial Reports: Generate system-wide lending and payment reports
5. User Management: Administer users and manage system roles
6. Payment Oversight: Track all payments with advanced filtering and search

Project Structure

LendingSystem/
├── app.py                        # Main Flask application with models and routes
├── migrate_db.py                 # Database migration utility
├── requirements.txt              # Python dependencies
├── README.md                     # Project documentation
├── templates/                    # Jinja2 HTML templates
│   ├── base.html                # Base template with sidebar navigation
│   ├── index.html               # Landing page
│   ├── login.html               # User authentication
│   ├── register.html            # User registration
│   ├── dashboard.html           # User dashboard with loan overview
│   ├── credit_application.html  # Credit assessment form
│   ├── loan_application.html    # Comprehensive loan application
│   ├── payments.html            # Payment management interface
│   ├── borrowers.html           # Borrower analytics dashboard
│   ├── view_loan.html           # Individual loan details
│   ├── make_payment.html        # Payment processing form
│   ├── users.html               # User administration
│   └── reports.html             # Financial reporting
├── static/                      # Static web assets
│   ├── css/
│   │   └── style.css           # Custom CSS styling
│   └── js/                     # JavaScript files (if any)
└── instance/                   # Instance-specific files
    └── lending_new.db          # SQLite database file

Security Features

• Password Security: Secure password hashing with Werkzeug's scrypt algorithm
• Session Management: Flask-Login with secure session handling
• Input Validation: Comprehensive server-side and client-side form validation
• SQL Injection Protection: SQLAlchemy ORM with parameterized queries
• Financial Precision: Decimal arithmetic for accurate monetary calculations
• Role-Based Access Control: Admin and user roles with permission checks
• Error Handling: Graceful error handling with user-friendly messages

Database Models

Core Models

• User: Authentication, profile, and role management
• Loan: Enhanced loan records with credit scoring and risk assessment
• Payment: Detailed payment tracking with methods and notes
• CreditApplication: Comprehensive credit assessment data
• LoanDocument: Document management for loan applications
• AmortizationSchedule: Payment schedule calculations

Key Features

• Credit Scoring Algorithm: Multi-factor credit assessment
• Risk Rating System: Automated risk categorization
• Debt-to-Income Calculations: Real-time financial ratio analysis
• Collateral Management: Asset tracking for secured loans

Planned Enhancements

• Payment Reminders: Automated overdue notifications
• Document Upload: Secure file management for loan documentation
• Loan Amortization: Detailed payment schedule breakdowns
• Advanced Analytics: Enhanced reporting and data visualization
• API Development: RESTful APIs for mobile applications
• Multi-Currency: International currency support
• Email Integration: Automated status notifications
• Export Functionality: PDF and Excel report generation

Contributing

1. Fork the repository
2. Create a feature branch
3. Commit your changes
4. Push to the branch
5. Create a Pull Request

License

This project is open source and available under the MIT License.

Support

For issues and questions, please create an issue in the GitHub repository.