Open AccessLoan Eligibility Prediction using Data Science Algorithms A Comparative Analysis
Author(s) -
M. Ramkumar,
Judit Johny,
Keshav L Darak,
B M Maresh,
Joseph John
Publication year - 2022
Publication title -
rest journal on emerging trends in modelling and manufacturing
Language(s) - English
DOI - 10.46632/jemm/8/1/5
Subject(s) - loan , amortizing loan , non conforming loan , actuarial science , participation loan , cross collateralization , bridge loan , term loan , computer science , non performing loan , business , finance
Loan is a amount that is provided to someone else in exchange for repayment of the loan principle amount plus interest. The different variety of loans is Personal loan, Home loan, Education loan, etc. Here, Decision Tree and Naïve Bayes algorithms are used to predict the loan eligibility of a particular individual. Data mining techniques are used to extract data and predict the loan eligibility. By providing loan, the banks help in the overall flow of the economy of the country. The borrower can avail the loan whenever required and the bank can get back the principle amount with interest based on some pre-defined percentages.