Fuzzy logic based decision support system for loan risk assessment

Abstract

This paper is concerned with risks associated with the loan Risk analysis and related adaptation strategies have grown in importance and complexity during last years. The large amount of data and information that needs to be handled and integrated requires specific methodologies and tools. So selecting a new loan applicant is a important issue of a financial organizations or Banks. There are so many different factors which effect on the selection of applicant who apply for loan. So, it's a problem for Banks and other private financers to choose right applicant so that minimum risk involved during loan process using fuzzy logic. We control this problem in quicker and cheapest way using knowledge and experience of experts which are involved in this process and having knowledge about this field. This paper provides risk analysis based on fuzzy inference system. And provide GUI based interface tool regarding different parameters of an applicant which effect loan risk assessment. The analysis of experimental results of different applicants checks the correctness and consistency of decision Support system for correct decision making.