6242 PROJECT Team Placeholder

WHAT ARE WE TRYING TO DO?

(H1)
 Enhance the loan approval process for people with little or no credit history
 Assess the default risk of a loan based on factors such as demographic data,
income, house & car ownership etc.
 Provide a user interface to check the loan approval chances for an applicant
 CURRENT PRACTICE &
LIMITATIONS (H2)
 Decision based on traditional credit scores generated by credit bureaus
 Many consumers do not have credit history to generate a traditional score
 Fewer attributes (predominantly financial) are being used to make a decision
(using model like Logistic Regression, Ensemble Learning, SVM, k-NN, Neural Networks) [1][2][3]
 OUR APPROACH (H3)
Data Decision
Personal information
(age , marital status, no.
Loan of dependents etc.)
Applicant Model
Credit Bureau Data
(if available)

Public records and

Property Data

Economic information
(income, owns car, owns
mobile, owns house etc.)
WHY WILL IT BE
SUCCESSFUL? (H3)

 Unlock the full potential of additional attributes (more than 100 attributes)
 Improved feature selection based on literature survey
 More extensive and diverse dataset to train our model
WHO CARES? (H4)

Lower income households with less/no credit history

 People with limited access to formal financial institutions
 Micro financial institutions to expand their customer base
 P2P lenders to make better informed decisions
 Social lenders to provide positive loan experience
 POTENTIAL IMPACT &
POSSIBLE PITFALLS (H5, H6)
Risks Payoffs
 Model not performing upto expectations  Minimizing credit default risk
 Greater false positives  Financial inclusion
 Overfitting  Increase in efficiency of incumbent
players
 Learning Bias
 PLAN OF ACTIVITIES &
PROGRESSMidterm
CHECK Check
(H8 & H9)
Data Integration
Data Cleaning Implementing Log-
Exploratory Data Analysis Reg, RF, CART, SVM
etc.
Data Preparation ML Algorithms Visualisation
(1.5 Weeks)
(1 Week) (2.5 Weeks)

Feature Engineering Comparing performance

(1 Week) (1.5 Weeks)
Model Evaluation
using k-fold Cross
From 210 attributes validation, AUC -
ROC, Confusion
Matrix etc.