Entity Relationship Diagram Example: Small Loan System


Entity relationship diagrams (ERD) are widely used in database design and systems analysis to represent systems or problem domains. This ERD example shows the entities involved in a small loan system, which includes browser, lender, repayment, deadline, etc.

This ER design example and template can be edited with Visual Paradigm Online, an online diagramming software. Click Use this Template to edit this ERD template, or click Create Blank to create a new one.

What is ER Diagram?

An entity relationship diagram (also known as ER model or ER diagram in short) describes interrelated things of interest in a specific domain of knowledge. An ER diagram is usually the result of systematic analysis to define and describe what is important to processes in an area of a business. It does not define the business processes; it only presents a business data schema in graphical form. It is usually drawn in a graphical form as entities that are connected by relationships which express the associations and dependencies between entities.

Conceptual Design vs Logical Design vs Physical Design ERD

Conceptual Design - Creating an Entity Relationship Diagram (ERD) and associated data dictionary to represent the reality and capture business data requirements

Logical Design - Transforming ERD to relational model: tables, keys (constraints), etc.

Physical Design - Creating the database and other supporting structures based on a specific DBMS

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