Predicting the Loan Using Machine Learning

The implementation of recent technological advancements in banking sector will simplify the loan approval process. It is a well-known fact that the banks benefit more from loans. However, taking a loan from banking sector will highly depend on a crucial parameter, loan status, resulting with the outputs of either YES or NO (approval or rejection). However, it is not always possible to select the true applicant, who will return the loan. It is also difficult to manually select a real client, since banks have different methods for selecting a genuine client. So, in this case, a machine learning approach can be utilized to predict whether the selected applicant is a good choice for loan payback. The machine learning algorithm will evaluate the loan applicant based on the previous data. Here, the algorithm will reduce the chance of opting out the candidates by selecting genuine clients. This research study incorporated the machine learning [ML] algorithms like logistic regression and random forest for performing loan prediction.