MUMBAI, India, Oct. 12 -- Intellectual Property India has published a patent application (202641117770 A) filed by Revathi R on October 01, 2026, for Mobile-Based Loan Utilization Tracking System With Ai-Driven Purpose-Consistency Verification And Blockchain-Anchored Utilization Ledger.
Inventors include Asok Kumar V; Bhavadharini G; Rithikroshini K; Kanisha Sri V; Hari Devi A; and Priyadharshini B.
The application for the patent was published on October 09, 2026, under issue no. 41/2026.
Abstract: Loan utilization monitoring is a critical process by which financial institutions verify that borrowed funds are used for their intended purpose. Traditional monitoring methods rely on manual verification, physical bank visits, and periodic paper-based reports, which are slow, resource-intensive, difficult to scale, and prone to fraud. Existing digital alternatives, including generic GPS device-tracking systems, transaction-pattern based AI fraud detectors, and OCR- based document digitization used during loan origination and KYC, track a borrower's location, spending behaviour, or identity documents in isolation, but do not verify, at the point of expenditure, whether a specific purchase is actually consistent with the declared purpose of the loan, nor do they maintain a tamper-evident, purpose-linked record of that verification. The present invention proposes a mobile-based loan utilization tracking system that closes this gap by digitally monitoring, in real time, how disbursed loan amounts are utilized by borrowers, and by verifying the purpose-consistency of each expenditure using a combination of optical character recognition (OCR), GPS- based geofencing, and artificial intelligence (AI) based analytics. The system comprises a mobile application installed on the borrower's smartphone, a GPS module, a cloud server, a database server, an AI-based analytics engine, and a bank administrator dashboard. Borrowers use the mobile application to upload bills, invoices, and photographic evidence of expenditure, along with GPS-tagged location data indicating where the loan-related activity took place. As a distinguishing feature, an OCR and merchant-identification module extracts the merchant name, category, and item-level details from each uploaded bill, which are cross-validated by an AI-based Purpose-Consistency Verification Engine against the borrower's declared loan purpose, a merchant-category reference database, and the GPS-geofenced location of the transaction, to compute a per-transaction purpose-consistency score. Each verified transaction, together with its score, is written to a permissioned, blockchain-anchored utilization ledger that creates an immutable, tamper-evident audit trail admissible for regulatory or dispute- resolution purposes. The individual scores are aggregated into a dynamic Loan Utilization Compliance Score, which the bank administrator dashboard uses to trigger real-time alerts for anomalous or diverted spending, and which may further be used to automatically adjust borrower- facing incentives, such as interest-rate rebates or enhanced future credit eligibility, for consistently compliant utilization. By combining purpose-specific, point-of-expenditure verification with an immutable compliance ledger, the invention reduces the risk of loan misuse, saves verification time and cost, and enhances trust between borrowers and financial institutions to a degree not achieved by existing location-tracking, fraud- detection, or document-digitization systems considered individually.
Disclaimer: Curated by HT Syndication.
