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Loan Default Prediction with AI Models

This project focuses on predicting loan defaults and assessing credit risk using machine learning techniques. It combines exploratory data analysis with models like Logistic Regression and Random Forest to classify borrowers into risk categories, improving prediction accuracy over traditional methods. The system also automates report generation for financial analysts, contributing to better credit risk management and reduced financial losses.

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bapusivani7
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7 views1 page

Loan Default Prediction with AI Models

This project focuses on predicting loan defaults and assessing credit risk using machine learning techniques. It combines exploratory data analysis with models like Logistic Regression and Random Forest to classify borrowers into risk categories, improving prediction accuracy over traditional methods. The system also automates report generation for financial analysts, contributing to better credit risk management and reduced financial losses.

Uploaded by

bapusivani7
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Loan Default Prediction and Risk Profiling using Machine Learning

Abstract:
The growth of digital lending has increased the need for accurate credit risk assessment to reduce
loan defaults. This project addresses the problem of identifying potential defaulters using Artificial
Intelligence and Data Science. The objective is to build a predictive model and risk profiling
system to classify borrowers into risk categories. The approach includes Exploratory Data Analysis
to detect trends in income, loan amount, and credit score. A rule-based scoring system is combined
with machine learning models such as Logistic Regression and Random Forest. The dataset is
analyzed and visualized using Python libraries in Google Colab. Findings show that machine
learning improves default prediction accuracy compared to simple rule-based methods. The system
also generates automated PDF reports for decision-making by financial analysts. This work
integrates AI, predictive analytics, and FinTech applications for practical use in credit risk
management. It holds significance in reducing financial losses, improving loan collection
strategies, and ensuring sustainable credit growth.

Keywords: 1. AI, 2. ML, 3. Credit Risk Analytics, 4. Predictive Modeling, 5. Data Science

Domain of Summer Industry Internship – II: Artificial Intelligence & Data Science

Student Information:

Name of the Student: Duggempudi Keerthi Priya

Roll Number: 22311A1982

Branch & Section: ECM - B

Mr Dayakar Kondamudi
Faculty Coordinator

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