LOAN MANAGEMENT SYSTEM AND METHOD

摘要

A loan management system and method includes an alternative repayment amortization method. Each installment on repayment of the loan includes an equal fixed principal repayment amount and an interest amount. The equal fixed principal repayment amount is based on the amount of the loan and the number of installments to be paid over the life of the loan. The interest due for each installment is based on the interest rate and the amount of outstanding principal at the time a given installment is due.

主权项

1. A loan product, utilizing a computing device, comprising:
a principal amount; an interest rate; a predetermined number of repayment installments; a fixed principal repayment amount, wherein the fixed principal repayment amount is determined by dividing the principal amount by the number of repayment installments, and wherein the principal amount is reduced by the fixed principal repayment amount after each repayment installment; and an interest payment amount based on the amount of principal remaining, the interest rate and the number of repayment installments.