Method and System for Providing Loans Based on the Repayment Capacity of a Customer

• US 20140258088A1
• Filed: 03/11/2013
• Published: 09/11/2014
• Est. Priority Date: 03/11/2013
• Status: Abandoned Application

• Current Assignee: Northwestern University
• Original Assignee: Northwestern University
• Inventors: Belarj, Mohammed
• Application Number:
  US13/792,580
• Publication Number:
  US 20140258088A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method and system for efficiently providing loans based on the repayment capacity of a customer for providing a customer with one or more repayment options for a loan that satisfy a repayment capacity for the customer. The method and system for efficiently providing loans based on the repayment capacity of a customer generally includes calculating a repayment capacity for a customer, providing the customer with a payment card, selecting an item for purchase by the customer from a merchant, requesting a loan from the issuer by the customer, determining if the customer has sufficient repayment capacity, providing the customer one or more repayment options that satisfy the repayment capacity, selecting a repayment option by the customer and transferring funds from the issuer to the merchant for the purchase amount.

Claims

1. A method of issuing a loan to a customer, comprising:

selecting an item for purchase by a customer from a merchant at a purchase amount, wherein said merchant is enrolled with a controller;

requesting a loan by said customer from an issuer enrolled with said controller;

providing said customer via said controller a plurality of payment plan options for repaying said loan that are within an available repayment capacity for said customer; and

selecting a payment plan by said customer for repaying said loan.

2. The method of claim 1, including the step of calculating an original repayment capacity for said customer.

3. The method of claim 2, wherein said step of calculating said original repayment capacity is performed by said issuer, wherein said issuer provides said loan to said customer via said controller.

4. The method of claim 2, wherein said original repayment capacity is comprised of a portion of revenues for said customer.

5. The method of claim 2, wherein said original repayment capacity is comprised of a monthly amount of money and wherein said loan includes a monthly payment for a term.

6. The method of claim 5, wherein said plurality of payment options are comprised of payment options having monthly payments equal to or less than said available repayment capacity.

7. The method of claim 5, wherein said available repayment capacity is comprised of said original repayment capacity reduced by a total of monthly payments for current loans to said customer.

8. The method of claim 1, including the steps of:

selecting a second item for purchase by said customer from a second merchant at a second purchase amount;

requesting a second loan by said customer;

providing said customer a second plurality of payment plan options for repaying said second loan that are within said available repayment capacity for said customer; and

selecting a payment plan by said customer for repaying said second loan.

9. The method of claim 1, including the step of transferring funds from said issuer to said merchant for said purchase amount after said step of selecting a payment plan.

10. The method of claim 9, including the steps of:

purchasing said item from said merchant by said issuer;

paying said merchant for said item by said issuer; and

reselling said item to said customer by said issuer.

11. A method of issuing a loan to a customer, comprising:

enrolling an issuer by a controller;

enrolling an acquirer by said controller;

preapproving a customer of said issuer for a loan account having an original repayment capacity, wherein said original repayment capacity is comprised of a maximum allowed total periodic payment from said customer to repay said loan account;

selecting an item for purchase by said customer from a merchant associated with said acquirer;

requesting a loan by said customer from said loan account;

calculating an available repayment capacity remaining of said original repayment capacity for said loan account;

providing said customer a plurality of payment plan options for repaying said loan that are within said available repayment capacity for said customer; and

selecting a payment plan by said customer for repaying said loan.

12. The method of claim 11, wherein said step of requesting a loan includes the step of submitting via a payment terminal to said issuer a price for said item and a customer identifier for said loan account.

13. The method of claim 12, including the step of providing said customer with a payment card associated with said loan account.

14. The method of claim 13, wherein said step of requesting a loan includes the step of providing payment information from said payment card and purchase information of said item to said payment terminal.

15. The method of claim 14, wherein said step of requesting a loan includes the step of transmitting said payment information and said purchase information from said payment terminal to said issuer.

16. The method of claim 13, wherein said payment card is comprised of a smart card that performs said step of calculating an available repayment capacity.

17. The method of claim 11, including the step of transferring funds from said issuer to said controller and then to said acquirer of said merchant to purchase said item.

18. A method of issuing a loan to a customer, comprising:

enrolling an issuer by a controller;

enrolling an acquirer by said controller;

preapproving a customer of said issuer for a loan account having an original repayment capacity, wherein said original repayment capacity is comprised of a maximum allowed total periodic payment from said customer to repay said loan account;

providing said customer with a payment card associated with said loan account;

selecting an item for purchase by said customer from a merchant associated with said acquirer;

transferring customer data from said payment card to a payment terminal of said merchant;

entering purchase amount of said item into said payment terminal;

requesting a loan by submitting via said payment terminal to said issuer via said controller said customer data and said purchase amount;

calculating an available repayment capacity remaining of said original repayment capacity for said loan account;

providing said customer a plurality of payment plan options for repaying said loan that are within said available repayment capacity for said customer, wherein said step of providing said customer a plurality of payment plan options is comprised of displaying and/or printing said plurality of payment plan options;

selecting a selected payment plan by said customer for repaying said loan;

submitting to said issuer said selected payment plan; and

executing a repayment contract by said customer for said loan.

19. The method of claim 18, including the step of transferring funds from said issuer to said merchant to purchase said item.

20. The method of claim 18, wherein said original repayment capacity is comprised of a monthly amount of money said customer is allowed up to for all monthly payments on all loans within said loan account.