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Data Analysis On Loan Prediction

This document presents a data analysis project on loan prediction. It discusses using machine learning algorithms like logistic regression to build a model that can predict whether a loan will be approved or not based on customer details. The proposed system uses a semi-automated approach for loan prediction to make the process faster and more accurate compared to the existing manual system. Sample training data and the system architecture are provided. The analysis shows the logistic regression model can accurately predict loan approvals.

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deekshith kumar
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204 views20 pages

Data Analysis On Loan Prediction

This document presents a data analysis project on loan prediction. It discusses using machine learning algorithms like logistic regression to build a model that can predict whether a loan will be approved or not based on customer details. The proposed system uses a semi-automated approach for loan prediction to make the process faster and more accurate compared to the existing manual system. Sample training data and the system architecture are provided. The analysis shows the logistic regression model can accurately predict loan approvals.

Uploaded by

deekshith kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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DATA ANALYSIS ON LOAN

PREDICTION
PRESENTED BY:
M.S.S.VANGMAYE (157R1A0534)
C.DIKSHITH KUMAR (157R1A0516)
K.MADHURI (157R1A0536)

UNDER THE GUIDANCE OF:


Mr. M.RAVIKANTH
Associate Professor (CSE dept.)
Contents:
 ABSTRACT
 EXISTING SYSTEM
 PROPOSED SYSTEM
 REQUIREMENTS
 ARCHITECTURE
 TRAINING DATA
 ALGORITHMS
 ANALYSIS RESULTS
 CONCLUSION
ABSTRACT:
 Loan prediction is a very common real-life problem that each
retail bank faces at least once in its lifetime.
 If done correctly, it can save a lot of man hours at the end of a
retail bank.
 If Company wants to automate the loan eligibility process (real
time) based on customer detail provided while filling online
application form.
Cont…
 These details are Gender, Marital Status, Education, Number
of Dependents, Income, Loan Amount, Credit History and
others. To automate this process, they have given a problem to
identify the customers segments; those are eligible for loan
amount so that they can specifically target these customers.

 We have to predict whether a loan would be approved or not.


In a classification problem, we have to predict discrete values
based on a given set of independent variable(s)
EXISTING SYSTEM:
 In the present system, loan prediction is often done
manually.
 This is done mostly by humans and this process consumes
much time.
 Bank employees verify each and every person’s details and
then predict whether the loan can be given or not.
DISADVANTAGES OF EXISTING
SYSTEM:

 In the existing system, loan prediction is done manually. It


requires a lot of human effort.
 This process is very much time consuming as it is done
manually.
 In the existing system, we cannot assure accurate results.
PROPOSED SYSTEM:
 In Machine Learning, we are using semi-automated extraction
of knowledge of data for identifying whether a loan would be
approved or not.
 Classification is a supervised learning in which the response is
categorical that is its values are in finite unordered set.
 To simply the problem of classification, scikit learn tools have
been used.
ADVANTAGES OF PROPOSED SYSTEM:

 The company need not has to maintain a ground team to


validate and verify the customer records.
 They can easily check whether the loan has to be approved
or not by this prediction model.
SYSTEM REQUIREMENTS:
 Anaconda Software to be installed.
 Microsoft Windows 10/8/7/Vista/2003/XP.
 For Anaconda: Minimum 3 GB disk space to download and
install.
 4 GB RAM recommended.
 pandas = 0.20.3
 seaborn = 1.0.0
 sklearn = 0.19.1
SYSTEM ARCHITECTURE:
TRAINING DATA:
 Training Data is labelled data used to train your machine
learning algorithms and increase accuracy.
 Algorithms learn from data. They find relationships, develop
understanding, make decisions, and evaluate their confidence
from the training data they’re given.
 The better the training data is, the better the model performs.
Sample Dataset:
LOGISTIC REGRESSION ALGORITHM:

 Logistic regression is generally used where the dependent


variable is Binary.
 That means the dependent variable can take only two possible
values such as “Yes or No”, “Default or No Default”, “Living or
Dead”.
 In this model, linear regression algorithm is used to predict the
loan approval.
Applications of Logistic regression:
 Logistic regression is used for prediction of output
which is binary, as stated above. For example, if a
credit card company is going to build a model to
decide whether to issue a credit card to a customer or
not, it will model for whether the customer is going to
“Default” or “Not Default” on this credit card.
Cont…
 Similarly an ecommerce company that is sending out
costly advertisement /promotional offer mails to
customers, will like to know whether a particular
customer is likely to respond to the offer or not. In
Other words, whether a customer will be “Responder”
or “Non Responder”.
Analysis Result:
Conclusion
 From a proper analysis of positive points and constraints on the
component, it can be safely concluded that the product is a
highly efficient component.
 This application is working properly and meeting to all Banker
requirements.
 This application is working properly and meeting to all Banker
requirements.
 In near future this module of prediction can be integrate with
the module of automated processing system.
THANK YOU

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