Electronic lending and borrowing system

• US 7,447,659 B2
• Filed: 10/12/2006
• Issued: 11/04/2008
• Est. Priority Date: 08/15/2001
• Status: Expired due to Term

• Current Assignee: Medha Parthasarathy
• Original Assignee: Medha Parthasarathy
• Inventors: Parthasarathy, Medha
• Primary Examiner(s): Dass; Harish T.
• Application Number:
  US11/580,138
• Publication Number:
  US 20070067229A1
• Time in Patent Office: 754 Days
• Field of Search: 705 35- 38, 705/4
• 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. A method of assisting potential borrowers to obtain bank guarantees in a comsumer-to-consumer electronic lending and borrowing system, the method comprising:

receiving bank data from a user that is a financial institution or bank, via a computer network, where said bank data comprises, maximum collateral required, minimum collateral required, charges, and a required type of collateral;

constantly monitoring and periodically verifying a value of the collateral and providing an alert if the collateral value is below a baseline value and requesting the borrower to add to the value of the collateral;

receiving borrower data from a user that is a borrower via a computer network, where said borrower data comprises, a time period, a guarantee amount, and a type of bank said borrower wishes to obtain a bank guarantee from;

comparing said bank data to said borrower data and matching said bank data to said borrower data when said bank data contains the same values as said borrower data;

informing each said bank whose bank data matches with one or more entries of borrower data both the borrower and the bank of the matched details and thereby identifying a prospective counterpart;

said system facilitating communication and negotiation between respective counterparts;

bank confirming match by transmitting a confirmation to a central server of said system on successful negotiation of all terms;

upon receiving confirmation from at least one bank, said central server freezing corresponding borrower data so as to not display said borrower data to other banks;

said borrower providing collateral to an escrow account;

said system verifying received collateral for type and amount as provided in the borrower data;

a bank providing bank guarantee to said borrower and subsequently informing said system; and

said system storing data for historical market and credit analysis,

where borrowers are obtaining bank guarantees to be used as collateral in said consumer-to-consumer electronic lending and borrowing system, where both lenders and borrowers are consumers.

2. The method of claim 1, wherein said communication between respective counterparts comprises negotiation between said counterparts in order for said borrower to obtain a bank guarantee.

3. The method of claim 1, further comprising receiving collateral information from a prospective borrower and verifying a value of said collateral.

4. The method of claim 1 further comprising monitoring a utilization of said bank guarantee.

5. The method of claim 1 further comprising comparing said collateral value to said bank guarantee to determine a amount of the bank guarantee eligible for lending purposes.

6. The method of claim 1, the method further comprising the step of maintaining borrower data in said system for further matching, when the negotiation fails.

7. The method of claim 1, the method further comprising the step of prospective borrowers modifying preferences to obtain bank guarantee, when there is no bank interested in providing bank guarantee.

8. The method of claim 1, where collateral type is one among securities including shares, debt instruments, mutual fund units, and bank guarantees.

9. The method of claim 1, the method further comprising the step of facilitating borrower to offer to provide bank guarantee as a collateral for other loan transactions within said system.

10. The method of claim 1, the method further comprising the step of return of collateral on end of tenure.

11. The method of claim 1, the method further comprising the step of assisting bank in liquidation of collateral in case of a counterparty not complying to terms of contract.

12. The method of claim 1, the method further comprising the step of returning excess cash received over and above requirement of bank from a counterparty to said counter party.