Performance Measurement of Various Machine Learning Algorithms to Predict Loan Approval

Abstract

When one or more people or organisations borrow money from others, organisations, or businesses, they are said to be taking out a loan. The borrower (the recipient) is given a loan and is ordinarily liable for paying interest until the amount is repaid. With the advent of the banking sector, more and more people are applying for loans from banks, but the bank has limited assets that should only be offered to a few people, so finding out who can lend to someone will be a safe way for the bank. In this chapter, the authors have suggested four different machine learning algorithms to predict loan approval, in which the logistic regression machine learning algorithm gives better results than other algorithms.