Loan Eligibility Prediction using Data Science Algorithms A Comparative Analysis

Abstract

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.