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    Literature Survey

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    Ezhilarasi
    1. Banks face significant challenges in efficiently processing the large number of loan applications they receive daily and accurately assessing which applicants deserve loans while mitigating risk. 2. Previous research has used machine learning algorithms like logistic regression, decision trees, random forests and neural networks to predict loan defaults with varying levels of success based on applicant attributes. 3. This document reviews several papers that developed machine learning models to predict loan approvals, with the goal of reducing risk for banks by identifying the safest applicants to approve loans for.

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    Literature Survey

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    Ezhilarasi
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    1. Banks face significant challenges in efficiently processing the large number of loan applications they receive daily and accurately assessing which applicants deserve loans while mitigating risk. 2. Previous research has used machine learning algorithms like logistic regression, decision trees, random forests and neural networks to predict loan defaults with varying levels of success based on applicant attributes. 3. This document reviews several papers that developed machine learning models to predict loan approvals, with the goal of reducing risk for banks by identifying the safest applicants to approve loans for.

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    Personal loan

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    1. Banks face significant challenges in efficiently processing the large number of loan applications they receive daily and accurately assessing which applicants deserve loans while mitigating risk. 2. Previous research has used machine learning algorithms like logistic regression, decision trees, random forests and neural networks to predict loan defaults with varying levels of success based on applicant attributes. 3. This document reviews several papers that developed machine learning models to predict loan approvals, with the goal of reducing risk for banks by identifying the safest applicants to approve loans for.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    53 views3 pages

    Literature Survey

    Uploaded by

    Ezhilarasi
    1. Banks face significant challenges in efficiently processing the large number of loan applications they receive daily and accurately assessing which applicants deserve loans while mitigating risk. 2. Previous research has used machine learning algorithms like logistic regression, decision trees, random forests and neural networks to predict loan defaults with varying levels of success based on applicant attributes. 3. This document reviews several papers that developed machine learning models to predict loan approvals, with the goal of reducing risk for banks by identifying the safest applicants to approve loans for.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    PRECTING PERSONAL LOAN APPROVAL USING

    MACHINE LEARNING

    DEFINE PROBLEM / PROBLEM UNDERSTANDING

    Literature Survey

    As the data is increasing daily due to digitization in the banking sector, people
    want to apply for loans through the internet. Machine Learning (ML), as a
    typical method for information investigation, has gotten more consideration
    increasingly. Individuals of various businesses are utilising ML calculations to
    take care of the issues dependent on their industry information. Banks are facing
    a significant problem in the approval of the loan. Daily there are so many
    applications that are challenging to manage by the bank employees, and also the
    chances of some mistakes are high.Most banks earn profit from the loan, but it is
    risky to choose deserving customers from the number of applications.There are
    various algorithms that have been used with varying levels of success. Logistic
    regression, decision tree, random forest, and neural networks have all been used
    and have been able to accurately predict loan defaults. Commonly used features
    in these studies include credit score, income, and employment history, sometimes
    also other features like age, occupation, and education level.

    1." Loan Approval Prediction based on Machine Learning Approach" Author-


    Kumar Arun, Garg Ishan, Kaur Sanmeet Year- 2018The main objective of this
    paper is to predict whether assigning the loan to particular person will be safe or
    not. This paper is divided into four sections (i)Data Collection (ii) Comparison of
    machine learning models on collected data (iii) Training of system on most
    promising model (iv) Testing

    2.“Exploring the Machine Learning Algorithm for Prediction the Loan


    Sanctioning Process” Author- E. Chandra Blessie, R. Rekha - Year- 2019
    Extending credits to corporates and individuals for the smooth functioning of
    growing economies like India is inevitable. As increasing number of customers
    apply for loans in the banks and non- banking financial companies (NBFC), it is
    really challenging for banks and NBFCs with limited capital to device a standard
    resolution and safe procedure to lend money to its borrowers for their financial
    needs. Inaddition, in recent times NBFC inventories have suffered a significant
    downfall in terms of the stock price. It has contributed to a contagion that has
    also spread to other financial stocks, adversely affecting the benchmark in recent
    times.In this paper, an attempt is made to condense the risk involved in selecting
    the suitable person who could repay the loan on time thereby keeping the bank’s
    nonperforming assets (NPA) on the hold. This is achieved by feeding the past
    records of the customer who acquired loans from the bank into a trained machine
    learning model which could yield an accurate result. The prime focus of the paper
    is to determine whether or not it will be safe to allocate the loan to a particular
    person. This paper has the following sections (i) Collection of Data, (ii) Data
    Cleaning and (iii)Performance Evaluation. Experimental tests found that the
    Naïve Bayes model has better performance Evaluation. Experimental tests found
    that the Naïve Bayes model has better performance than other models in terms of
    loan forecasting.

    3. “Loan Prediction using machine learning model” Year-2019 whether or not it


    will be safe to allocate the loan to a particular person. This paper has the
    following sections (i) Collection of Data, (ii) Data Cleaning and (iii)Performance
    Evaluation. Experimental tests found that the Naïve Bayes model has better
    performance than other models in terms of loan forecasting.With the
    enhancement in the banking sector lots of people are applying for bankloans but
    the bank has its limited assets which it has to grant to limited people only,so
    finding out to whom the loan can be granted which will be a safer option for the
    bank is a typical process. So in this project we try to reduce this risk factor behind
    selecting the safe person so as to save lots of bank efforts and assets. This is done
    by mining the Big Data of the previous records of the people to whom the loan
    was granted before and on the basis of these records/experiences the machine was
    trained using the machine learning model which give the most accurate result
    The main objective of this project is to predict whether assigning the loan to
    particular person will be safe or not. This paper is divided into four sections
    (i)Data Collection (ii) Comparison of machine learning models on collected data
    (iii) Training of system on most promising model (iv)Testing. In this paper we
    are predict the loan data by using some machine learning algorithms they are
    classification, logic regression, Decision Tree and gradient boosting.
    4.“Loan Prediction using Decision Tree and Random Forest”Author- Kshitiz
    Gautam, Arun Pratap Singh, Keshav Tyagi, Mr. Suresh Kumar Year-2020. In
    India the number of people or organization applying for loan gets increasd every
    year. The bank have to put in a lot of work to analyse or predict whether the
    customer can pay back the loan amount or not (defaulter or non-defaulter) in
    the given time. The aim of this paper is to find the nature or background or
    credibility of client that is applying for the loan. We use exploratory data analysis
    technique to deal with problem of approving or rejecting the loan request or in
    short loan prediction. The main focus of this paper is to determine whether the
    loan given to a particular person or an organization shall be approved or not.

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