Patent ID: 7870048

Claim:
A computer implemented method for generating and displaying a flexible schedule for repayment of a loan, the method comprising the steps of: computing an effective rate of interest, wherein the effective rate of interest is computed on the basis of a nominal rate of interest and a compounding frequency; calculating installments to be paid based on a principal loan amount, a loan term, a disbursement date, the effective rate of interest and a predetermined set of parameters, wherein the installments are payable on at least one predetermined date at one or more predetermined period(s) of time; generating a schedule for the repayment of the loan on the basis of calculated installments and; displaying a schedule for repayment of the loan, wherein the installments are calculated in accordance with the following equation: PV = A ( 1 + r eff ) ( ID 1 - DD ) ND + A ( 1 + r eff ) ( ID 2 - DD ) ND + K + A ( 1 + r eff ) ( ID n - DD ) ND wherein PV is the principal loan amount, A is the installment amount, r eff is the effective rate of interest, ID 1 is the first installment date, ID n is the last installment date, DD is the disbursement date of the loan and ND is the number of days in the year, wherein said computing, said calculating, said generating and said displaying are performed by a computer system by execution of a computer readable program stored on a computer usable medium.