Test Cases for Loan Management System

Introduction
In the development of a Loan Management System (LMS), testing is crucial to ensure that all functionalities work as expected and that the system can handle real-world scenarios. This article provides comprehensive test cases for various components of an LMS, including loan application, loan approval, repayment processing, and account management. Each test case will be described in detail, covering the purpose, preconditions, test steps, expected results, and possible outcomes.

1. Loan Application Module Test Cases

Test Case 1: New Loan Application Submission

• Purpose: To verify that a new loan application can be successfully submitted.
• Preconditions: The user is logged into the LMS and has access to the loan application page.
• Test Steps:
  1. Navigate to the loan application page.
  2. Enter valid applicant details, including name, contact information, income, and loan amount.
  3. Submit the loan application.
• Expected Result: The system should display a confirmation message indicating that the loan application has been successfully submitted.
• Possible Outcomes:
  • The application is accepted and forwarded for approval.
  • An error message is displayed if any required fields are missing or contain invalid data.

Test Case 2: Invalid Loan Amount

• Purpose: To ensure that the system rejects loan applications with an invalid loan amount.
• Preconditions: The user is logged into the LMS.
• Test Steps:
  1. Enter a loan amount that exceeds the allowed limit.
  2. Submit the loan application.
• Expected Result: The system should display an error message indicating that the loan amount exceeds the permissible limit.
• Possible Outcomes:
  • The application is rejected.
  • The user is prompted to enter a valid loan amount.

2. Loan Approval Module Test Cases

Test Case 3: Approve a Valid Loan Application

• Purpose: To verify that a valid loan application can be approved by an authorized user.
• Preconditions: The loan application is in the "Pending Approval" state.
• Test Steps:
  1. Log in as an authorized user with loan approval permissions.
  2. Navigate to the loan approval page.
  3. Review the loan application details.
  4. Approve the loan application.
• Expected Result: The system should change the status of the loan application to "Approved" and notify the applicant.
• Possible Outcomes:
  • The loan application is approved.
  • The system logs the approval action for auditing purposes.

Test Case 4: Reject a Loan Application

• Purpose: To verify that a loan application can be rejected based on certain criteria (e.g., insufficient credit score).
• Preconditions: The loan application is in the "Pending Approval" state.
• Test Steps:
  1. Log in as an authorized user.
  2. Navigate to the loan approval page.
  3. Review the loan application details.
  4. Reject the loan application and provide a reason.
• Expected Result: The system should change the status of the loan application to "Rejected" and notify the applicant.
• Possible Outcomes:
  • The loan application is rejected, and the reason is recorded.
  • The applicant receives a notification explaining the rejection.

3. Loan Repayment Module Test Cases

Test Case 5: Process a Loan Repayment

• Purpose: To ensure that loan repayments are processed correctly.
• Preconditions: The borrower has an active loan with a due payment.
• Test Steps:
  1. Log in as the borrower.
  2. Navigate to the loan repayment page.
  3. Enter the payment amount.
  4. Submit the payment.
• Expected Result: The system should update the loan balance and generate a payment receipt.
• Possible Outcomes:
  • The payment is successfully processed, and the balance is updated.
  • The system issues a receipt for the payment.

Test Case 6: Insufficient Funds for Repayment

• Purpose: To verify the system's response when a borrower attempts to make a payment with insufficient funds.
• Preconditions: The borrower’s account has insufficient funds.
• Test Steps:
  1. Log in as the borrower.
  2. Attempt to make a payment.
• Expected Result: The system should reject the payment and display an error message.
• Possible Outcomes:
  • The payment is not processed.
  • The borrower is notified of the insufficient funds.

4. Account Management Module Test Cases

Test Case 7: Update Borrower Information

• Purpose: To ensure that borrowers can update their personal information.
• Preconditions: The borrower is logged in.
• Test Steps:
  1. Navigate to the account management page.
  2. Update personal details such as address or phone number.
  3. Submit the changes.
• Expected Result: The system should save the changes and confirm the update.
• Possible Outcomes:
  • The personal information is updated successfully.
  • The system logs the changes for security purposes.

Test Case 8: View Loan History

• Purpose: To verify that borrowers can view their loan history.
• Preconditions: The borrower has at least one previous loan.
• Test Steps:
  1. Log in as the borrower.
  2. Navigate to the loan history page.
• Expected Result: The system should display a list of all past loans, including details such as loan amount, repayment status, and dates.
• Possible Outcomes:
  • The loan history is displayed correctly.
  • The borrower can download or print the loan history.

Conclusion

Thorough testing of a Loan Management System is critical to ensuring that all modules function as intended, from loan application submission to repayment processing. By covering a wide range of scenarios, including both typical user actions and potential edge cases, these test cases aim to identify any issues early in the development process. This proactive approach helps maintain the reliability and security of the LMS, ultimately contributing to a better user experience.