Yes, this is possible.
I developed for several libraries a catalogue database + loan administration + circulation system.
You can design your databases doing all things manual (loan, circulation slip etc).
However, a best thing is to develop a macro system for this.
Even developing a web interface is possible.
If your are not familiar with writing macros there is a way to go.
However, I think for not much money you can buy some support for this.
It is not a big job and much cheaper than high-priced library programs.
I have created automated integrated library management systems, including cataloguing, acquisitions and periodicals modules.
Since all were small special/corporate/scientific/technical libraries, most with honour-based circulation, there was no need for a circulation module, but you shouldn't have any problems with one. With Cardbox's capability of displaying data in barcode format, you could even develop it for barcode printing/reading, if the size/needs of your library warrants it .
You can program (or hire someone to do it) more sophisticated macros using visual basic, or ... you can create them by recording your keyboard strokes. once you figure out the steps for doing it manually.