Loan Prediction Using Machine Learning.

Name:- Richa Srivastava, Sem III, Data Science, Roll:-(2101331540086)

Problem Statement:- Most of the time Banks, Home Loan Companies,

Government takes a lot of time in validating the customer’s eligibility for a

loan. They want to automate this process based on customer details like

education, dependents, etc.

Tools and Technology:- Python,Machine Learning, Bivariate analysis, Data

Cleaning, Model Building, Model Planning, Regression, Model Predicting,

NumPy Library, Pandas, Matplotlib, etc.

Project Process:- Intermediate

 Introduction To The Project.
• In this project, I have taken two CSV files “train_ctrUa4K.csv"
test="test_lAUu6dG.csv“, one for training the module and one for testing the
data and making the module predict.
• The training dataset contains these attributes Loan ID', 'Gender', 'Married',
'Dependents', 'Education', 'Self Employed', 'Applicant Income', ‘Co-applicant
Income', 'Loan Amount', 'Loan Amount Term', 'Credit History', 'Property Area',
'Loan Status.
• Then understanding the data has been done with the help of the column
feature, head feature, types, and info feature.
• At this point, I have done a Univariate analysis of the Loan status, where I
found that 422 counts were yes and 192 were no, then normalizes this
value between 0 to 1 and got values Y 0.687296 N 0.312704.
• The approval rate of trained data was 69%.
• Then we count the categorical values and normalize their value we got that 80
percent are male, 65% married,15% self-employed and 85%have
repaid their dept.
• Then plotted a distplot of the numerical variable which is applicant income, we
noticed that graduates have more outliers income than non-graduates.
• Co-applicant incomes vary from -0-5000.
• Then I have done missing value treatment with fillna and feature engineering
like combining the applicant and co-applicant incomes and then building the
model.

• Conclusion:-
• People who had repaid their debt had higher chances to get the loan.
• Applicant income does not affect the chances of having a loan.
• Credit history more, semiurban area:- high chances
• Married People have a higher chance of getting loans.
• Co-applicant income less, higher the chances of getting a loan.

Project Summary:- This project is used to automate the prediction of

chances of getting a loan before going in process.
 Technology and Tools.

• Technology:- Machine learning, Variate Analysis,

Correlation, Supervised learning.
• Tools:- Python, Jupiter notebook, CSV Files, Libraries etc.
How does it work?
Future Scope and Monetization.

With the help of loan predictors, the process of providing a fair loan will get faster
and more start-ups and growth will be there.

This model can also work as 3rd party in predicting the loan for any particular
organization.

The more complex the model, the better the prediction, more money is there.