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Loan Approval Prediction by Machine Learning Algorithm

2025· preprint· W4415438669 on OpenAlexaff
Mahamudul Hasan, M. Sarkar

Bibliographic record

Venuenot available
Typepreprint
Language
FieldBusiness, Management and Accounting
TopicFinTech, Crowdfunding, Digital Finance
Canadian institutionsInfineon Technologies (Canada)
Fundersnot available
KeywordsLoanStatistical classificationStability (learning theory)Training set

Abstract

fetched live from OpenAlex

This research attempts to evaluate how various classical machine learning classifiers perform in predicting whether a loan application will be approved or rejected. A dataset of 4,269 observations and 13 features containing applicant's personal details, financial standing, and credit scores was utilized. The data preprocessing steps include categorical variable encoding, power transformation to handle skewness, and outlier analysis. Features are selected through statistical methods using ANOVA F-test, Chi-Square, Mutual Information, and Kendall correlation, which identified CIBIL score, loan term, income, and asset values as highly relevant predictors. To handle class imbalance, Synthetic Minority Oversampling Technique (SMOTE) was applied, resulting in a more balanced dataset for training. Multiple machine learning models were tested, including Logistic Regression, Support Vector Classifier (SVC), Decision Trees, Random Forests, K-Nearest Neighbors (KNN), and boosting method like XGBoost. The results showed that boosting method XGBoost worked best, achieving a test accuracy of 98.24% which is better than the other models. The results also show that using ensemble learning, along with good data preparation and balancing, is a strong approach for predicting loan approvals.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.003
metaresearch head score (Gemma)0.007
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Simulation or modeling · Consensus signal: Simulation or modeling
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.004
Threshold uncertainty score0.014

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0030.007
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0020.001
Science and technology studies0.0000.000
Scholarly communication0.0010.001
Open science0.0010.000
Research integrity0.0010.001
Insufficient payload (model declined to judge)0.0010.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.010
GPT teacher head0.210
Teacher spread0.200 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designSimulation or modeling
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2025
Admission routes1
Has abstractyes

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