A Review on Loan Approval Prediction Based on Machine Learning Techniques

Year : 2024 | Volume : 15 | Issue : 02 | Page : 1-11
    By

    Gaurav Raj Baser,

  • Sadhna K. Mishra,

  1. M.Tech. Scholar, Department of Computer Science Engineering, Lakshmi Narain College of Technology, Bhopal, Madhya Pradesh, India
  2. Professor, Department of Computer Science Engineering, Lakshmi Narain College of Technology, Bhopal, Madhya Pradesh, India

Abstract

The banking industry has also benefited greatly from technological advancements. An increasing number of individuals are submitting loan applications on a daily basis. When deciding which loan applicants to approve, the bank must take certain rules into account. The bank needs to choose the best one for approval based on certain characteristics. The process of carefully verifying every person and recommending them for loan approval is laborious and fraught with danger. Currently, machine learning is extremely popular. In today’s technologically advanced society, there are machine algorithms for learning govern and manage almost all applications. After forecast whether a loan application will be approved or not, several ML models, often used for classification algorithms, are developed and evaluated in different tasks. This review investigates the key combination of machine learning approaches with loan approval prediction in the banking sector. The study uses supervised and unsupervised machine learning methods to create a prediction model based on a dataset of previous customers of banks. The study also thoroughly investigates the components of loan eligibility, the sorts of risks encountered in the banking industry, and the numerous classification methods used. This detailed analysis adds to a better understanding of the complex interactions between machine learning and loan processes within the banking sector.

Keywords: Loan approval, banking sector machine learning, classification methods

[This article belongs to Journal of Computer Technology & Applications ]

How to cite this article:
Gaurav Raj Baser, Sadhna K. Mishra. A Review on Loan Approval Prediction Based on Machine Learning Techniques. Journal of Computer Technology & Applications. 2024; 15(02):1-11.
How to cite this URL:
Gaurav Raj Baser, Sadhna K. Mishra. A Review on Loan Approval Prediction Based on Machine Learning Techniques. Journal of Computer Technology & Applications. 2024; 15(02):1-11. Available from: https://journals.stmjournals.com/jocta/article=2024/view=148406


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Regular Issue Subscription Review Article
Volume 15
Issue 02
Received 28/02/2024
Accepted 09/04/2024
Published 30/05/2024
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