ML BASED LOAN PREDICTION

Abstract

In the recent years, the number of people applying for the loans gets increased for various reasons. Loans can be taken from many sources. One of them is by using the online platforms that connects the investors and borrowers. As the investors involved in this platform are individual people not any organizations it is very important to make a wise decision in order to invest in a particular customer.The investor should be able to know whether is it safe to give loan to the borrower or not i.e., can the borrower be able to repay the loan. These platforms act as a connecting bridge for the people interested in investing their money to attain goodamount of interest and the people who wants to borrow money with low-interest rates compared to other sources. In this project, we are using Lending club data set to determine whether the loan is re- payed or charged-off., analyze the data using Exploratory Data Analysis and apply the machine learning algorithms like KNN Classifier, Random Forest Classifier, Decision Tree and Logistic Regression.