Loan Delinquency Prediction using Machine Learning Techniques

Abstract

Abstract: Loan delinquency prediction is one of the most
critical and crucial problems faced by financial institutions and
organizations. It is a remarkable effect which could result in
the demolition of the profitability rate that leads to the
shattering of the organization. Delinquency is a condition that
arises due to the failure of payment of loans by the borrowers,
which shows tremendous effect on the evolution of financial
institutions. It requires more authentications to track the
periodic repayments of debts and adaptation of strategies that
helps in proliferating the institutions. Based on the details like
date of issuance, pay-back time, amount, account details, credit
score further issuance of loan is assured this helps in
disseminating the delinquency problem.
Index Terms: Delinquency; Prediction; Logistic Regression;
Supervised Learning; Decision Tree; Random Forest;
Ensemble.