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This report documents the step-by-step approach used to train and evaluate a neural network model for classifying loan applications as either defaulted (1) or not defaulted (0), using structured data.

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Loan Default Prediction Using Neural Networks

This project demonstrates how to predict loan default using an Artificial Neural Network (ANN) implemented in Python with TensorFlow and Keras.

Python 3.8+ TensorFlow Keras Jupyter

πŸ“ Project Structure

  • loan_default_prediction.ipynb – Jupyter Notebook with model training, evaluation, and visualization.
  • train.csv – Training dataset.
  • test.csv – Test dataset.
  • loan_predictions.csv – Example of model prediction outputs.

πŸ”§ Techniques Used

  • Data preprocessing with Pandas and Scikit-learn
  • Standardization of numerical features
  • One-hot encoding of categorical features
  • Dropout and L2 Regularization to reduce overfitting
  • Early stopping to optimize training duration
  • Model evaluation using accuracy, loss, and confusion matrix

πŸ“Š Visualization

Training and validation loss over epochs were plotted to monitor learning progress.

πŸš€ How to Run

  1. Clone the repository:
    git clone https://github.com/Mekusgood/loan-default-prediction.git

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This report documents the step-by-step approach used to train and evaluate a neural network model for classifying loan applications as either defaulted (1) or not defaulted (0), using structured data.

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