Traditional air conditioning systems run on the vapor compression cycle, which utilizes electricity generated from fossil fuels, the reserves of which are fast depleting. Moreover, the refrigerants used in such systems have exacerbated ozone layer depletion and climate change. Liquid desiccant air conditioning (LDAC) systems appear as a favorable option in light of these drawbacks. This paper has developed the numerical model of an LDAC system using a dehumidifier that is internally cooled and has a finned coil. The study of this particular model has been limited in the past. The model has been validated against a reference study available in the literature. Moreover, the commonly used desiccant materials tend to be corrosive and detrimental to the air quality. Therefore, the feasibility of an ionic liquid (65% [Emim]OAc) and an organic salt solution (73% HCOOK) as desiccant materials has also been investigated in this paper. With the proposed scheme for room air conditioning, the air temperature and humidity levels within the range of comfort (21∘C, 53% R.H.) could be supplied to the conditioned space. Performance analysis revealed that the eco-friendly desiccants could achieve dehumidifier and regeneration effectiveness similar to that of the traditionally used corrosive salt solution of calcium chloride (CaCl2). Furthermore, the estimated dehumidifier efficiency of about 76% is found to be higher than that available in the previous studies. Economic analysis provides a comparison of total cost between the conventional and the novel desiccant air conditioning systems and also reveals HCOOK to be a more economical choice as desiccant material.