Loan approval prediction

Abstract

A bank loan is an extension of credit by a bank to a customer or business. Lending is one of the primary financial products of any bank and the main profit comes directly from the loan’s interest.The loan corporations grant a loan after an intensive technique of verification and validation. However, they still don’t know for sure if an applicant would be able to repay their loan. Banking processes usually use manual policies to determine whether or not an applicant is suitable for a loan from their bank.The main purpose of this project was to determine whether an applicant is eligible for a loan by gathering data from multiple sources while using machine learning techniques to extract useful information. This would help lending organizations and banks to make the right decision for every loan approval.