Authors : P V V S V Prasad; P.V Nageswara Rao

Volume/Issue : Volume 9 - 2024, Issue 4 - April

Google Scholar : https://tinyurl.com/yfkbmpvr

Scribd : https://tinyurl.com/2un33vcc

DOI : https://doi.org/10.38124/ijisrt/IJISRT24APR292

Abstract : With the growth of the banking sector, the identification of reliable borrowers that must maintain the natural core income and asset accumulation becomes a key issue. Despite all security measures, reliability of customers remains an unclear question. To tackle this barrier, banking management which is directed towards customer loan repayment consistency is required. Credit approval is a significant aspect of economy since it determines the allocation of credit-linked funds. Today, machine learning is known for its power to automate and scale up the processing of application for loans. This project will begin with data collection which will consist of data on historical (regarding the past) loan applications and the borrower profiles. The dataset has features of the credit score, income, previous work experience, debt-to-income ratio, and loan repayment record. This way, the models learn through the strengths to find good features and the reasons for accepting a loan. They are the experts in these areas and can forecast the potential patterns and connections of the data. Within the scope of this work, the supervised algorithms used are logistic regression, decision trees, random forests, and support vector machines. These algorithms are applied to the dataset available to often produce results like binary classification and regression. The adoption of machine learning among financial institutions is intended for a faster processing of loans which is their benefit. What is credit scoring, it is a tool which automate manual loan application review thereby increases efficiency. The machine-learning algorithms that analyse applications for loans could cut down on the possibilities of human biases and mistakes which are an inherent part of the process. Also, ML uses the model to recognize borrowers who may default and subsequently lower the likelihood of default. Part of the task involve utilizing historical credit market data and implementing ML algorithms to develop a highly accurate and reliable loan approving system based on trained-data, random forests, the stream of loans and reliable clients.

Keywords : Construction of Data, Creation of Correlation, Banker Loans, Customer Safety.