LOAN STATUS
By G Muni Srikar
TABLE OF
CONTENTS
• Introduction 01
• Motivation 02
• Project Explanation 03
• Feature Selection 04
• Conclusion 05
INTRODUCTION
Generally, loan prediction involves the lender looking
at various background information about the
applicant and deciding whether the bank should
grant the loan
LOAN STATUS
Parameters like credit score, loan amount, lifestyle, career, and assets are the
deciding factors in getting the loan approved.
MOTIVATION
MACHINE LEARNING ALGORITHM
&
IMPLEMENTATION
• This project was started as a motivation for learning Machine Learning
Algorithms and to learn the different data preprocessing techniques
such as Exploratory Data Analysis, Feature Engineering, Feature
Selection, Feature Scaling and finally to build a machine learning
model.
• In this project, I have implemented various data pre-processing
tecniques such as imputing null values, encoding categorical columns
and handled the imbalanced data.
PROJECT EXPLANATION
01 02 03 04
FEATURE APPLICATION_INCOME Data Pre-processing
DATA COLLECTION
ENGINEERING • Loan_Amount Data processing is the
& • Loan_Amount_term
• Loan_ID concept of changing
LOADING THE • Credit_History
• Gender raw data into a clean
DATA • Married
• Property_Area
data.
• Dependents like
this..
FEATURE SELECTION
BUILDING MODEL TEST DATA
MACHINE PERFORMANCE PREDICTIONS
LEARNING
MODELDS
ADVANTAGES :
• Helps lenders make better decisions
• Reduce the risk default
• Improves efficiency in loan processing
• Increase the chance of loan repayments
• Minimize the chances of financial loss for lenders
DIS ADVANTAGES :
• Prediction models may not always be accurate
• Automated models may overlook individual circumstances
• It’s important to consider other relevant factors alongside predictions
By using Random Forest Classifier is
giving the best accuracy with an accuracy
score of 82% for the testing data.
THANK YOU!