FORECASTING LOAN APPROVAL USING MACHINE LEARNING MODEL

Banks are making a significant part of their profits through loans. Loan approval is a very important process for banking organizations. It is tough to predict the possibility of payment of loans by the customers because there is an increasing rate of loan defaults and the banking authorities are finding it more difficult to correctly access loan requests and tackle the risks of people defaulting on loans. In this case, the right prediction would be very beneficial using some machine learning algorithm. In this work, we use a machine learning technique such as a Random Forest classifier that will predict the person who is reliable for a loan. This work’s primary objective is to predict whether the loan approval to a specific individual is safe or not.