System and method for issuing and managing flexible loans

A method for providing a flexible loan to a consumer, comprising:

• receiving, by flexible loan module comprising a processor and a memory in communication with said processor, consumer loan data for a consumer loan including a principal loan amount and payment terms including a payment schedule;
• generating, by the flexible loan module, a flexible loan comprised of said principal loan amount and said payment terms of said consumer loan;
• receiving, by the flexible loan module, transaction data from the consumer through a user interface including a request to modify the payment terms of the consumer loan in order to submit an excess payment over the amount of said payment terms;
• generating, by the flexible loan module, a line of credit which includes said excess payment, wherein the line of credit comprises a first line of credit amount;
• associating, by the flexible loan module, said line of credit with said flexible loan for said consumer loan within the flexible loan system;
• generating, by the flexible loan module, an investment pool comprising a plurality of said lines of credit within the flexible loan system;
• providing, by the flexible loan module, said consumer loan data for display on a visual display for the consumer and receiving one or more modification to receive at least some of said excess payment of said line of credit associated with said flexible loan from the consumer;
• and
• retrieving, by the flexible loan module, said one or more modifications of said excess payment of said line of credit from said consumer and process said excess payment from said line of credit from said investment pool and generate a second line of credit amount based on return of at least some of said excess payment to said consumer.

A flexible loan system comprising a tangible non-transitory computer readable medium comprising instructions executable by a computer for performing the following:

• receiving, by the processor, data pertaining to a consumer loan from a lender to a borrower, said consumer loan having an original amortization schedule;generating, by the flexible loan module, a flexible loan comprising said consumer loan data;
• receiving, by the flexible loan module, payments to be applied to said flexible loan, each of said payments having a payment amount;
• and
• applying, by the processor, each of said payments to said flexible loan in the following order of priority, regardless of when said payments are made, the amounts of said payments, and the source of said payments:
• (i) to interest accrued;
• (ii) to principal, if any, in an amount equal to an installment amount due per said original amortization schedule minus said interest accrued;
• (iii) to fees outstanding, if any;
• (iv) to additional principal, if any, in an amount equal to said payment amount minus an amount of said payment already applied per said (i), (ii), and (iii) priorities.
• generating, by the flexible loan module, excess payments to be applied to said flexible loan;
• and
• generating, by the flexible loan module, a line of credit for said excess payments.