Electronic lending and borrowing system

• US 7,447,656 B2
• Filed: 08/15/2001
• Issued: 11/04/2008
• Est. Priority Date: 08/15/2001
• Status: Active Grant

• Current Assignee: Medha Parthasarathy
• Original Assignee: Medha Parthasarathy
• Inventors: Parthasarathy, Medha
• Primary Examiner(s): Dass; Harish T.
• Application Number:
  US09/929,939
• Publication Number:
  US 20030036993A1
• Time in Patent Office: 2,638 Days
• Field of Search: 705 35- 38, 707/10, 709/204, 710/105, 370/427, 726/13
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A common forum for borrowing and lending includes a plurality of remote devices associated with respective potential counterparts, a communications network for permitting communication between the remote devices, and a central server computer. Each user enters preferences and data pertaining to what he or she would like to lend or borrow and under what conditions. The central server computer then uses the preferences of lending and borrowing data from each user to identify possible counterparts that might be mutually acceptable based on the preference information. Once a match occurs, the potential counterparts can negotiate through the central server to negotiate some or all terms. After the negotiation is complete, the forum will reveal the counterpart details to both the parties of contract for settlement.

Claims

1. An apparatus for matching prospective borrowers with prospective lenders to initiate and complete a loan process in a consumer to consumer electronic borrowing and lending scheme, comprising:

a means for accepting borrower data via a computer network from one or more prospective borrowers, where said borrower data includes, the type of collateral to be used in the loan, the loan terms and their respective range of acceptable values, and what loan terms are negotiable by each prospective borrower;

a means for accepting lender data via a computer network from one or more prospective lenders, where said lender data includes, the type of collateral to be used in the loan, the loan terms and their respective range of acceptable values, and what loan terms are negotiable by said prospective lenders;

a means for constant evaluation of said collateral;

a means for comparing said lender data from each said prospective lender to said borrower data from each said prospective borrower;

determining when said lender data from a prospective lender matches borrower data from a prospective borrower to identify a user counterpart match, where matching occurs when the values of said lender data equal the values of said borrower data or when said lender data or said borrower data is within the range of acceptable value; and

a means for providing lender with a list of borrowers, who have data matching the lender'"'"'s data;

a means for providing borrower with a list of lenders, who have data matching the borrower'"'"'s data;

a means for lenders and borrowers to negotiate terms of loan and complete loan process where terms of loan comprises of loan amount, period, rate of interest, collateral, collateral amount, type of collateral, mix of collateral, number of calls to be made, calls for top up, foreclosure, foreclosure penalty, validity period, collateral availability, and mode of payment; and

a means for lenders and borrowers to add new terms of loan for negotiation with counterparties,

where both lenders and borrowers are consumers.

2. The apparatus of claim 1, further comprising a means for storing said borrower data.

3. The apparatus of claim 1, further comprising a means for storing said lender data.

4. The apparatus of claim 1, further comprising a means for facilitating communication between each said prospective borrower with one or more of said prospective lenders whose lender data matches with the borrower data of said prospective borrower, wherein said communication includes loan application negotiation, and completion of the loan application process.

5. The apparatus of claim 1, further comprising a means for facilitating communication between each said prospective lender with one or more of said prospective borrowers whose borrower data matches with the lender data of said prospective lender, wherein said communication includes loan application negotiation, and completion of the loan application process.

6. The apparatus of claim 1, further comprising a means for transferring loan funds from said prospective lender to said prospective borrower.

7. The apparatus of claim 1, further comprising a means for transferring said collateral from said prospective borrower to a user collateral account.

8. The apparatus of claim 1, further comprising a means for escrowing said collateral and returning said collateral to said prospective borrower upon expiration of the loan, and alternatively forwarding said collateral to said prospective lender in the event of a loan default.

9. The apparatus of claim 8, further comprising a means for constant evaluation of the value of said collateral.

10. The apparatus of claim 9, further comprising a means for informing said counterparts if said collateral value is less than said collateral value requirement.

11. The apparatus of claim 8, further comprising a means for receiving a collateral value requirement as agreed to by said lender and said borrower.

12. The apparatus of claim 11, further comprising a means for requesting said borrower to deposit funds to replenish the reduction in said collateral value below said collateral value requirement.

13. The apparatus of claim 1, further comprising a means for transmitting counterpart loan data to each user whose respective data results in a user counterpart match.

14. The apparatus of claim 1, further comprising a means for suspending the matching analysis of the loan data pertaining to a user upon request by the said user.

15. The apparatus of claim 1, further comprising a means for evaluating the availability and value of the collateral offered by said prospective borrower.

16. The apparatus of claim 1, further comprising a means for receiving loan payments from said borrower and transferring funds equal to said loan payments to said lender.

17. The apparatus of claim 1, further comprising a means for foreclosing on the loan upon the request from one or more counterparts.

18. The apparatus of claim 17, further comprising a means for matching the counterparts of the foreclosed loan with other counterparts.

19. The apparatus of claim 1 wherein said loan is selected from the group consisting of capital, equities, or debt.

20. The apparatus of claim 1, wherein said means for matching comprises a buyer aggregation model.

21. The apparatus of claim 1 further comprising a means for querying said matched borrower and said matched lender for a rollover loan on the same terms or on new terms.

22. The apparatus of claim 1 further comprising storing match data.

23. The apparatus of claim 1 further comprising a means for monitoring when loan proceeds are due, receiving said loan proceeds into an escrow account and transferring said loan proceeds to a lender.

43. The method of claim 19, wherein said matching function comprises a buyer aggregation model.

24. A method for matching prospective borrowers with prospective lenders to initiate and complete a loan process in a consumer to consumer electronic borrowing and lending scheme conducted over a computer network comprising a central server connected to a plurality of remote devices through a communication network, at least one of the central server and the plurality of remote devices having a memory on which a program configured to execute the electronic borrowing and lending scheme can, at least in part, be stored, comprising the steps of:

accepting borrower data via the computer network from one or more prospective borrowers, where said borrower data includes, the type of collateral to be used in the loan, the loan terms and their respective range of acceptable values, and what loan terms are negotiable by each prospective borrower;

accepting lender data via the computer network from one or more prospective lenders, where said lender data includes, the type of collateral to be used in the loan, the loan terms and their respective range of acceptable values, and what loan terms are negotiable by said prospective lenders;

evaluating the value of said collateral at a specified time period and providing an alert if the collateral falls below a baseline value and requesting supplemental additions to the collateral;

comparing said lender data from each said prospective lender to said borrower data from each said prospective borrower;

determining when said lender data from a prospective lender matches borrower data from a prospective borrower to identify a user counterpart match, where matching occurs when the values of said lender data equal the values of said borrower data or when said lender data or said borrower data is within the range of acceptable value; and

providing said lender with a list of borrowers, who have data matching said lender'"'"'s data;

providing said borrower with a list of lenders, who have data matching said specific borrower'"'"'s data;

said lender and borrower negotiating terms of loan and completing loan process where terms of loan comprises of loan amount, period, rate of interest, collateral, collateral amount, type of collateral, mix of collateral, number of calls to be made, calls for top up, foreclosure, foreclosure penalty, validity period, collateral availability, mode of payment; and

said lender and borrower adding new mutually agreed terms of loan for negotiation with counterparties,

where both lenders and borrowers are consumers.

25. The method of claim 24, further comprising the step of storing said borrower data.

26. The method of claim 24, further comprising the step of storing said lender data.

27. The method of claim 24, further comprising the step of facilitating communication between each said prospective borrower with one or more of said prospective lenders whose lender data matches with the borrower data of said prospective borrower, wherein said communication includes loan application negotiation, and completion of the loan application process.

28. The method of claim 24, further comprising the step of facilitating communication between each said prospective lender with one or more of said prospective borrowers whose borrower data matches with the lender data of said prospective lender, wherein said communication includes loan application negotiation, and completion of the loan application process.

29. The method of claim 24, further comprising the step of transferring loan funds from said prospective lender to said prospective borrower.

30. The method of claim 24, further comprising the step of transferring said collateral from said prospective borrower to a user collateral account.

31. The method of claim 24, further comprising the step of escrowing said collateral and returning said collateral to said prospective borrower upon expiration of the loan, and alternatively forwarding said collateral to said prospective lender in the event of a loan default.

32. The method of claim 31, further comprising the step of evaluating the value of said collateral.

33. The method of claim 32, further comprising the step of informing said counterparts if said collateral value is less than said collateral value requirement.

34. The method of claim 31, further comprising the step of receiving a collateral value requirement as agreed to by said lender and said borrower.

35. The method of claim 34, further comprising the step of requesting said borrower to deposit funds to replenish the reduction in said collateral value below said collateral value requirement.

36. The method of claim 24, further comprising the step of transmitting counterpart loan data to each user whose respective data results in a user counterpart match.

37. The method of claim 24, further comprising the step of suspending the matching analysis of the loan data pertaining to a user upon request by the said user.

38. The method of claim 24, further comprising the step of evaluating the availability and value of the collateral offered by said prospective borrower.

39. The method of claim 24, further comprising the step of receiving loan payments from said borrower and transferring funds equal to said loan payments to said lender.

40. The method of claim 24, further comprising the step of foreclosing on the loan upon the request from one or more counterparts.

41. The method of claim 40, further comprising the step of matching the counterparts of the foreclosed loan with other counterparts.

42. The method of claim 24 wherein said loan is selected from the group consisting of capital, equities, or debt.

44. The method of claim 24 further comprising querying said matched borrower and said matched lender if a rollover loan is desired on the same terms or on new terms.

45. The method of claim 24 further comprising storing match data.

46. The method of claim 24 further comprising monitoring when loan proceeds are due, receiving said loan proceeds into an escrow account and transferring said loan proceeds to a lender.