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Loan Eligibility

The document outlines a project focused on using machine learning to improve loan eligibility predictions, addressing issues with manual assessments. It details the dataset, features, ML pipeline, and algorithms used, highlighting Random Forest for its accuracy. The conclusion emphasizes the benefits of faster decisions and the need for model deployment and monitoring for bias.

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kalai mugill
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7 views7 pages

Loan Eligibility

The document outlines a project focused on using machine learning to improve loan eligibility predictions, addressing issues with manual assessments. It details the dataset, features, ML pipeline, and algorithms used, highlighting Random Forest for its accuracy. The conclusion emphasizes the benefits of faster decisions and the need for model deployment and monitoring for bias.

Uploaded by

kalai mugill
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

LOAN ELIGIBILITY

PREDICTION USING
MACHINE LEARNING
MODELS IN PYTHON
Varsha . A
2nd year, Aero Dept
PROBLEM STATEMENT
Issue: Manual loan
assessments are slow,
subjective, and error-prone.

Impact: Delays in approvals,


increased default risk, and
potential bias.

Objective: Use machine


learning to predict loan
eligibility accurately and
efficiently.
DATA AND FEATURES
Dataset: Historical loan data (e.g., credit
score, income, loan amount, debt-to-
income ratio, employment status).

Features: Numeric (credit score, income)


and categorical (marital status,
education).

Target: Loan Status (Approved/Rejected).

Preprocessing: Normalize data, handle


missing values, encode categories.
ARCHITECTURE
ML Pipeline:
Data Input: Collect and
preprocess applicant data.
Model Training: Train a
supervised learning model.
Prediction: Output eligibility
(Approved/Rejected).
Evaluation: Use metrics like
accuracy and precision.

Components: Data storage, ML


model, API for loan system
integration.
ALGORITHM
Approach: Supervised learning
(classification).
Algorithms: Logistic Regression,
Random Forest, XGBoost.
Choice: Random Forest for high
accuracy and non-linear data
handling.
Performance: Example metrics
(e.g., 87% accuracy, 85%
precision).
Evaluation: Confusion matrix and
AUC-ROC for validation.
CONCLUSION
Summary: ML improves loan
eligibility prediction with
accuracy and efficiency.

Benefits: Faster decisions,


reduced risk, scalable solution.

Next Steps: Deploy model,


integrate with loan systems,
monitor for bias.
THANK
YOU

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