Loan management system and method
OwnerJonathan Leminventor
Life of this patent
Estimating the term…
Abstract
A loan management system and method includes an alternative repayment amortization method. Each installment on repayment of the loan includes an equal fixed principal repayment amount and an interest amount. The equal fixed principal repayment amount is based on the amount of the loan and the number of installments to be paid over the life of the loan. The interest due for each installment is based on the interest rate and the amount of outstanding principal at the time a given installment is due.
Claims15
A loan product comprising:
- a principal amount;
- an interest rate;
- a predetermined number of repayment installments;
- a fixed principal repayment amount, wherein the fixed principal repayment amount is determined by dividing the principal amount by the number of repayment installments, and wherein the principal amount is reduced by the fixed principal repayment amount after each repayment installment;
- and
- an interest payment amount based on the amount of principal remaining, the interest rate and the number of repayment installments.
A loan management system comprising:
- one or more terminals operable to act as a client on a network;
- a computer operable to act as a server on the network and to communicate with each of the participant terminals over the network, the computer comprising:
- a memory configured to store a set of instructions;
- and
- a processor configured to execute the set of instructions, wherein the set of instructions cause the processor to:
- receive a principal loan amount from at least one terminal;
- receive an interest rate from at least one terminal;
- receive a number of repayment installments from at least one terminal;
- calculate a equal fixed principal repayment amount based on the principal loan amount and the number of repayment installments;
- calculate an interest payment based on the principal, the interest rate and number of repayment installments;
- calculate an installment amount by adding the equal fixed principal repayment amount and interest payment;
- calculate a remaining principal amount by subtracting the fixed principal repayment amount from the principal loan amount;
- calculate a subsequent interest payment based on the remaining principal amount, the interest rate and number of repayment installments;
- calculate a subsequent installment amount by adding the equal fixed principal repayment amount and the subsequent interest payment;
- and
- generate comparison information for display at least one terminal.
A computer implemented method of converting a traditional loan to an alternative loan and managing said alternative loan, wherein the traditional loan includes a remaining loan balance principal, a number of remaining loan installments and an interest rate, wherein the method comprises:
- calculating an equal fixed principal repayment amount based on the remaining loan balance principal of the traditional loan and the number of remaining loan installments of the traditional loan;
- calculating an interest payment based on the remaining loan balance principal of the traditional loan, the number of remaining loan installments of the traditional loan, and the interest rate of the traditional loan
- calculating an installment amount by adding the equal fixed principal repayment amount and interest payment;
- calculating a remaining principal amount by subtracting the fixed principal repayment amount from the principal loan amount;
- calculating a subsequent interest payment based on the remaining principal amount, the interest rate and number of repayment installments;
- and
- calculating a subsequent installment amount by adding the equal fixed principal repayment amount and the subsequent interest payment.
Dependencies are inferred from the claim text.