DESC:FIELD OF INVENTION
The present invention relates generally to a backend loan processing system, particularly to a system for evaluating credit worthiness of a loan applicants / borrowers. More particularly, to a system for verifying and evaluating credit worthiness of a loan applicant / borrower based on his/her capacity to repay the loan, character / willingness to repay and quality of collateral (title and valuation) for the loan.

BACKGROUND OF INVENTION
There are a number of steps to evaluate a loan applicant before sanction of loan covering the loan applicant’s ability or capability capacity to repay the loan, character / willingness to repay and collateral / security for the loan. Over the years, the loan applicant and lending dynamics have changed dynamically. However, most financial institutions continue to rely on conventional underwriting processes and lending guidelines. Additionally, target pressures, new employees to manage exponential growth, staff attrition and lack of time often result in inadvertent missing out of a few steps in the due diligence process, which may have longer term “bad loan” situation.

Financial institutions use generally accepted lending practices, policies and credit underwriting guidelines for grant of loans to borrowers. However, due to various factors such as change of regulatory framework, business models, business environment, capability or attitude of borrower the financial health of the borrower may or may not hold good during the life of loan. The continuous monitoring of loans requires numerous steps to protect an organization’s loans and advances against delinquency. Currently, diligent monitoring is mostly conducted in a non-standard fashion.

Known in prior art is a computer-implemented environment for evaluating loan applications for business and consumer lending. The environment allows users to process loan applications through a loan evaluation system. The loan evaluation system receives information about a loan application from users and/or from data which is already stored in one or more data stores. To facilitate processing a loan application, the loan evaluation system includes or has access to a credit assessment framework.

US8744946B2 disclosed method, system and computer readable media comprising program code for generating a financial score. It comprises collecting user-independent information from a first followed by second data set, assessing the income path and determining the risk associated with the income path and finally generating a financial score for the user.

US7451095B1 discloses systems and methods for processing financial information that identify if the income reported by the user is faulty. US8799150 B2 disclosed a method of income risk based credit scoring system that uses individual's unemployment risk probability and income loss risk and predicts the consumer credit risk forecast. It disclosed a novel method to predict the future employment or future ability to repay a loan.

US20040138995A1 disclosed a method to assess the credit worthiness of a borrower, by generating an advanced report for assessing the credit worthiness in a potential financial transaction with the lender. This report contains credit information and collateral information by obtaining credit information from plurality of credit reporting services.

US20080288393A1 disclosed a method of providing credit worthiness rating of a user with an electronic device, and based on the information gathered from the service provider of the electronic device. US8190515 B2 disclosed a method of using financial transactional data, to generate a financial statement which may include cash flow or net worth statements and used to determine the credit worthiness of the customer.

WO2017013529A1 disclosed a method of determining credit worthiness, using an online data platform, comprising a processor and a memory coupled with the processor. The processor by capturing personal data from social networking data , metadata or geolocation data of the user; processes the data to determine psychosocial, personal and socio-economic attributes of the user. This in comparison with predefined pattern generates a score which evaluates the credit worthiness of the user.

Another known in prior art is an automated loan underwriting system and method automates the logic implemented by a loan underwriter, saving the loan originator time and money. Each lending institution can set up its own decisioning criteria, enabling customers to customize the process in which a proper evaluation, owners and encumbrance report, or title product is selected for a loan application within a given set of characteristics. However, a score that includes one’s utilities / liability payment capacity is not depicted. Considering data which does not directly influence the loan repaying capacity of the borrower, will give a biased score.
Accordingly, there exists a need for a system for verifying and evaluating credit worthiness of a loan applicant / borrower based on his/her capacity to repay the loan, character / willingness to repay and collateral / security for the loan.

OBJECTS OF INVENTION
One or more of the problems of the conventional prior art may be overcome by various embodiments of the present invention.

It is the primary object of the present invention to provide a system for verifying and evaluating the credit worthiness of a loan applicant/ borrower from the data collected electronically from a plurality of sources.

It is another object of the present invention, wherein the loan applicant / borrower is either an individual or an Organization.

It is the another object of the present invention to provide a system for verifying and evaluating the credit worthiness of a loan applicant/ borrower using secured remote system for obtaining applicant’s information.

It is the another object of the present invention to provide a system for verifying and evaluating the credit worthiness of a loan applicant/ borrower, wherin all the information is downloaded, encrypted and stored in a secured remote system.
It is another object of the present invention is to provide a system verifying and evaluating the credit worthiness of a loan applicant/ borrower based on his capacity to repay the loan/ character or willingness to repay and quality of collateral (title and valuation) for the loan.

It is another object of the present invention to provide a system for verifying and evaluating the credit worthiness of a loan applicant/ borrower using a scoring logic engine which triangulates the information obtained from various sources to generate the credit worthiness.

It is another object of the present invention to provide a system for verifying and evaluating the credit worthiness of a loan applicant/ borrower, wherein the documents are deleted after a predefined time.

It is another object of the present invention, wherein the information includes but not limited to loan applicant / borrower personal details.

It is another object of the present invention, wherein the credit worthiness of the loan applicant / borrower is generated based on character attribute, income attribute, and capital attribute through the scoring logic engine.

It is another object of the present invention, wherein the credit worthiness of the loan applicant/ borrower is generated based on information generated using the following steps:
sending a link to applicant;
logging to a secured remote system through the link by the loan applicant;
logging to loan applicant’s service provider websites through the secured remote system; and downloading the documents from the service provider websites.

It is another object of the present invention, wherein the character attribute includes but not limited to a payment history, savings history, insurance coverage, education level, or stability measure.

It is another object of the present invention, wherein the information is verified by checking the loan applicant’s / borrower's documents that include but not limited to income tax returns, service tax returns, Value Added Tax (VAT) returns, Goods and Services Tax (GST) returns and utility bills such as electricity / water / telephone / mobile for defaults and the behavior is rated based on the end result.

It is another object of the present invention, wherein the income attribute includes but not limited to triangulating information from Income tax returns, tax deduction / withholding statements and bank statements.

It is another object of the present invention, wherein copy of the downloaded documents used for evaluating credibility is encrypted and sent to the loan applicant / borrower and respective lending organization separately through E-mail for their reference and records.

SUMMARY OF INVENTION
Thus according to the basic aspect of the present invention there is provided a system for verifying and evaluating credit worthiness of a loan applicant / borrower comprising:
a secured remote system for obtaining applicant’s information;
a scoring logic engine for generating the credit worthiness of the loan applicant; and
a data encryption module,
wherein applicant’s information is obtained from plurality of sources through the secured remote system,
wherein all obtained information documents are downloaded, encrypted and stored in the remote system,
wherein based on the information and documentation obtained, the scoring logic engine using a predefined value generates the credit worthiness of the loan applicant or borrower.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower comprising the steps:
sending a link to the applicant with login credentials;
logging to a secured remote system through the link by the loan applicant;
logging to loan applicant’s service provider websites through the secured remote system; and downloading the documents from the service provider websites.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein un-tampered document is stored in the secured remote system.

It is the another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the scoring logic engine triangulates the information obtained from various sources to generate the credit worthiness.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the pre-defined value is user defined.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the documents stored are deleted after predefined time.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein an authentication means are used for logging in and credential verification.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the authentication means includes OTP.
It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the sources of information include statutory sources and non traditional sources.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the non traditional sources include utility bills.

It is another aspect of the present invention to provide a system for verifying and evaluating credit worthiness of a loan applicant / borrower, wherein the predefined value includes behavioural rating of payment patterns and defaults.

DETAILED DESCRIPTION OF THE INVENTION
The present invention as discussed hereinbefore relates to a system for evaluating or determining credit worthiness of the loan applicant/ borrower. The invention particularly relates to a system for verifying and evaluating the credit worthiness of a loan applicant or a borrower based on his/ her capacity to repay the loan, character/ willingness to repay and quality of the collateral for the loan. The system may compute a score referred herein after as predefined value.

Information for verification/ evaluation is generated wherein the loan applicant/ borrower’s capacity to repay the loan is rated based on the behavior exhibited in repayment of bills of Government agencies and service providers, preferably Income tax returns, payment of utility bills, GST and other collaterals.
The steps followed are:
Sending of information by the Lender herein after Bank, to the service provider of the system of the present invention for evaluation of a particular user or customer or borrower. The customer is verified by the service provider of the invention for statutory liability by verifying the his filing of IT returns, for payments or defaults or any other notices if issued, which are indicators of his willingness to abide by law.

Customer is also verified for non-traditional liability, by examination of the utility bills like electricity/ water/ telephone/ mobile for both payments and defaults.

The service provider of the system of the present invention then connects with the borrower/ loan applicant through phone and through Email. A URL is sent to the customer via Email/SMS. OTP/Password is sent to the customer via SMS/Email. The customer logs into the system using the login link and the OTP/Password. After acceptance of the terms and conditions leads through the URL to the remote system, view of which is shared with the customer by the service provider of the invention. Receipt of OTP by the customer on his mobile phone and subsequent access to the URL using the OTP functions as an authentication step. The customer is needed to login with his personal login and password details for the respective utility service websites. The system doesn’t capture the personal details of the customer. The system downloads all relevant documents from the Income tax, water, electricity and other departments or for payment data, encrypts them and stores them in the remote system for a certain period agreed upon with the lender/ Bank. Data/ documents obtained from the websites are password protected to enable confidentiality and a copy is shared through Email, to the customer for his record along with password. After the completion of the period agreed upon for storing the data, it is moved to anonymised data. This data is processed by a scoring logic engine which triangulates the information from the various sources and generates a score. This score is compared by the system to predefined values to rate the customer and his ability to repay a given loan. ,CLAIMS:We Claim
1. A system for verifying and evaluating credit worthiness of a loan applicant or borrower comprising:
a secured remote system for obtaining applicant’s information;
a scoring logic engine for generating the credit worthiness of the loan applicant; and
a data encryption module,
wherein applicant’s information is obtained from plurality of sources through the secured remote system,
wherein all obtained information documents are downloaded, encrypted and stored in the remote system,
wherein based on the information and documentation obtained, the scoring logic engine using a predefined value generates the credit worthiness of the loan applicant or borrower.

2. The system for verifying and evaluating credit worthiness of a loan applicant or borrower according to claim 1, wherein the steps of obtaining information comprises of:
sending a link to the applicant with login credentials;
logging to a secured remote system through the link by the loan applicant;
logging to loan applicant’s service provider websites through the secured remote system; and downloading the documents from the service provider websites.

3. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1 and claim 2, wherein un-tampered document is stored in the secured remote system.
4. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the scoring logic engine triangulates the information obtained from various sources to generate the credit worthiness.

5. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the pre-defined value is user defined.

6. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the documents stored are deleted after predefined time.

7. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 2, wherein authentication means are used for logging in and credential verification.

8. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 7, wherein authentication means includes OTP.

9. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the sources of information include statutory sources and non traditional sources.

10. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the non traditional sources include utility bills.

11. The system for verifying and evaluating credit worthiness of a loan applicant as claimed in claim 1, wherein the predefined value includes behavioural rating of payment patterns and defaults.

12. A system to securely collect information from various sources using secure remote system technology.