Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)
Vol. 2 (2024): Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)

Cooperative Loan Eligibility Determination System Using The Evaluation Based on Distance form Average Solution (EDAS) Method

Aina Rahmadani (Universitas Malikussaleh)
Wahyu Fuadi (Universitas Malikussaleh)
Ar Razi (Universitas Malikussaleh)



Article Info

Publish Date
27 Dec 2024

Abstract

The rapid development of Decision Support Systems (DSS) has provided significant benefits, especially in supporting decision-making across various fields, including determining credit loan eligibility within cooperatives. Loans involve transactions in which lenders provide funds or assets to borrowers under agreed-upon terms. DSS is essential for enhancing objectivity and reducing the risk of non-performing loans arising from subjective evaluations. This study produces a web-based DSS capable of evaluating the loan eligibility of cooperative members by implementing the Evaluation Based on Distance from Average Solution (EDAS) method, combined with Rank Order Centroid (ROC) weighting. The system analyzes several criteria, such as collateral, membership status, loan amount, loan term, income, remaining loan balance, and payment status. The EDAS method generates a ranking based on eligibility, with alternative N0071 achieving the highest score of 0.907, followed by N0004 with a score of 0.830, and N0019 with a score of 0.762. The results of the system testing indicate that the loan eligibility calculations produced by the system are accurate and consistent with manual calculations, achieving a match of 95%. This ranking simplifies the cooperative's decision-making process. Furthermore, the system accelerates the loan eligibility determination process, enabling cooperatives to serve their members more effectively and efficiently.

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Journal Info

Abbrev

icomden

Publisher

Subject

Chemical Engineering, Chemistry & Bioengineering Civil Engineering, Building, Construction & Architecture Computer Science & IT Electrical & Electronics Engineering Engineering Industrial & Manufacturing Engineering

Description

The "Proceedings of International Conference on Multidisciplinary Engineering (ICOMDEN)" is a scientific publication that compiles innovative works from researchers, academics, and practitioners in the field of multidisciplinary engineering. This proceeding serves as a platform to present ...