METHOD AND SYSTEM FOR PROCESSING LOAN APPLICATIONS IN A FINANCIAL INSTITUTION

• US 20110161225A1
• Filed: 06/11/2010
• Published: 06/30/2011
• Est. Priority Date: 12/30/2009
• Status: Abandoned Application

• Current Assignee: Infosys Limited
• Original Assignee: Infosys Technologies Limited (Infosys Limited)
• Inventors: Nanda, Gaurav
• Application Number:
  US12/813,794
• Publication Number:
  US 20110161225A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method and system for processing loan applications in a financial institution is provided. The method includes a step of receiving a first loan application from a first loan applicant. The first loan application includes personal information of the first loan applicant. Further, the method includes the step of determining a repayment score for the first loan applicant based on the personal information of the first loan applicant. The repayment score is calculated using a polynomial equation. The polynomial equation represents a relationship between personal information of a plurality of past loan applications and a plurality of past repayment scores. Furthermore, the method includes processing the first loan application based on a threshold set for repayment scores for a particular type of loan.

Claims

1. A computer implemented method for processing loan applications in a financial institution, the method comprising:

Receiving a first loan application from a first loan applicant, wherein the first loan application comprises personal information of the first loan applicant;

determining a repayment score for the first loan applicant using a polynomial equation that represents a relation between a plurality of past repayment scores and personal information of the plurality of past loan applications, wherein the polynomial equation takes the personal information of the first loan applicant as an input; and

processing the first loan application based on a threshold set for repayment score for a particular type of loan.

2. The method as recited in claim 1, wherein the plurality of past repayment scores is decided based on a repayment history of the plurality of past loan applications, and wherein the repayment history comprises duration in which each of the plurality of past applications was closed.

3. The method as recited in claim 1, wherein past repayment score is an independent variable of the polynomial equation and personal information are dependent variables of the polynomial equation

4. The method as recited in claim 2 further comprises choosing a set of values for a set of coefficients and a degree of the polynomial equation.

5. The method as recited in claim 4 further comprises calculating a plurality of automated repayment scores for the plurality of past applications using the set of values and the personal information of the plurality of past loan applications.

6. The method as recited in claim 5 further comprises choosing a new set of values for the set of coefficients and the degree of the polynomial equation based on an error between the plurality of automated repayment scores and plurality of past repayment scores.

7. The method as recited in claim 6 further comprises using the new set of values and the personal information of the first loan applicant to calculate the repayment score for the first loan applicant.

8. A system for processing loan applications in a financial institution, the system comprising:

a user interface for receiving a first loan application from a first loan applicant, wherein the first loan application comprises personal information of the first loan applicant; and

a processor configured to;

determine a repayment score for the first loan applicant using a polynomial equation that represents a relation between a plurality of past repayment scores and personal information of the plurality of past loan applications, wherein the polynomial equation takes the first loan application as an input; and

process the first loan application based on a threshold set for repayment score for a particular type of loan.

9. The system as recited in claim 8 further comprises a data repository, wherein the data repository stores personal information of the plurality of past loan application

10. The system as recited in claim 8 further comprises an administrator user interface to decide the plurality of past repayment scores, wherein the plurality of past repayment scores are decided based on duration in which each of the plurality of past loan applications was closed.

11. The system as recited in claim 10 wherein the administrator user interface is further used to feed a set of values corresponding to a set of coefficients and a degree of the polynomial equation.

12. The system as recited in claim 11 wherein a random number generator module is used to generate the set of values corresponding to the set of coefficients and the degree of the polynomial equation.

13. The system as recited in claim 11, wherein the processor is further configured to:

calculate a plurality of automated repayment scores using the set of values and personal information of the plurality of past loan applications in the polynomial equation; and

determine an error between the plurality of automated repayment scores and the plurality of past repayment scores.

14. A computer program product for processing loan applications in a financial institution, the computer program product comprising instructions configured to:

receive a first loan application from a first loan applicant, wherein the first loan application comprises personal information of the first loan applicant;

determine a repayment score for the first loan applicant using a polynomial equation that represents a relation between a plurality of past repayment scores and personal information of the plurality of past loan applications, wherein the polynomial equation takes the first loan application as an input; and

process the first loan application based on a threshold set for repayment score for a particular type of loan.

15. The computer program product as recited in claim 14 further comprises program instructions configured to read from a data repository, personal information of the plurality of past loan application

16. The computer program product as recited in claim 14 further comprises program instructions configured to set the plurality of past repayment scores, wherein the plurality of past repayment scores are decided based on a duration in which each of the plurality of past loan applications was closed.

17. The computer program product as recited in claim 16 further comprises program instructions to receive a set of values corresponding to a set of coefficients and a degree of the polynomial equation that are fed by an administrator.

18. The computer program product as recited in claim 17 further comprises program instructions to generate random numbers to the set of values corresponding to the set of coefficients and the degree of the polynomial equation.

19. The computer program product as recited in claim 17 further comprises program instructions configured to:

calculate a plurality of automated repayment scores using the set of values and personal information of the plurality of past loan applications in the polynomial equation; and

determine an error between the plurality of automated repayment scores and the plurality of past repayment scores.