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Synopsis: Loan Prediction Stsyem

The document describes a loan prediction system project submitted for a bachelor's degree. It includes an introduction describing the problem of automating loan eligibility prediction using customer details. It also describes the proposed system overview and architecture, software requirements, data flow diagram, and low-level design.

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Lakshay Choudhary
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76 views8 pages

Synopsis: Loan Prediction Stsyem

The document describes a loan prediction system project submitted for a bachelor's degree. It includes an introduction describing the problem of automating loan eligibility prediction using customer details. It also describes the proposed system overview and architecture, software requirements, data flow diagram, and low-level design.

Uploaded by

Lakshay Choudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SYNOPSIS

LOAN PREDICTION STSYEM

Submitted in partial fulfillment of the requirements for the award of degree of

BACHELOR OF ENGINEERING

IN

COMPUTER SCIENCE & ENGINEERING

Submitted by:- Submitted to:-


SUMAN SAURAV(19BCS2650) Kushwant kaur
AMIT KUMAR(19BCS2988) (E11447)
KAMAL KANT(19BCS2682)

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING


Chandigarh university,Gharuan
Ferbruary 2022
1. Introduction
1.1 problem statement
.A Company wants to automate the
loan eligibility process (real time)
based on customer detail provided while
filling online application form. 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.
Here they have provided a data set.

1.2 literature survey


.We start our literature review with more
general systematic literature reviews that focus on
the application of machine learning in the general
field of Banking Risk Management. Since the global
financial crisis, risk management in banks has to
take a major role in shaping decision-making for
banks. A major portion of risk management is the
approval of loans to promising candidates. But the
black-box nature of Machine learning algorithms
makes many loan providers. Machine Learning is
being used in the fields of credit risk,market
risk, and liquidity risk only to conclude that the research falls short
of extensive research that is required in the field.

● Logistic regression still has its limitations, and it requires a large sample
of data for parameter estimation. Logistic regression also requires that
the variables be independent of each other otherwise the model tends
to overweight the importance of the dependent variables.

2. Overview and Planning


2.1 Proposed System Overview
2.2 Data Set

The training data set is now supplied to the machine learning model, on the basis
of this data set the model is trained. Every new applicant details filled
at the time of application form acts as a test data set. After the operation of
testing, the model predicts whether the new applicant is a fit case for approval
of the loan or not based upon the inference it concludes on the basis of the
training data sets.
2.3 Architecture Specifications

3. Software Requirements
●Jupiter Notebook
●Python
●NumPy
●Pandas
●Sckit learn
●Matplotlib
●AWS sage Maker
●S3 Bucket
●EC2 instance
4.System design
4.1 Data flow diagram:
4.2 Low-Level Design
Why do we need loan prediction?

A bank's profit or a loss depends to a large extent on loans


i.e. whether the customers are paying back the loan or
defaulting. By predicting the loan defaulters, the bank can
reduce its Non- Performing Assets. This makes the study of
this phenomenon very important.

THANKS

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