MétaCan
Menu
Back to cohort

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 distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow), Scholarly communication, Research integrity, Insufficient payload (model declined to judge)
Consensus categoriesMeta-epidemiology (narrow), Insufficient payload (model declined to judge)
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Other · Consensus signal: Other
Teacher disagreement score0.792
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.001
Meta-epidemiology (narrow)0.0020.002
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.002
Science and technology studies0.0010.000
Scholarly communication0.0030.003
Open science0.0010.005
Research integrity0.0010.003
Insufficient payload (model declined to judge)0.0020.002

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; both teacher heads agree on what is shown here.

Study designNot applicable
Domainnot available
GenreOther

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

Explore more

Same topicFinTech, Crowdfunding, Digital FinanceFrench-language works237,207