RISK NEXUS
CREDIT RISK ANALYSIS USING MACHINE LEARNING
GROUP NO-16
PROJECT MEMBERS-
A768-SWARAJ DUDHMAL
A762-AARYA TALEKAR
A769-MARUF PATHAN
A759-AJAY MISHRA
PROJECT GUIDE-
PROF. KAAJAL SHARMA
ABSTRACT
RiskNexus is a machine learning–based system designed to accurately predict the likelihood of loan
default by analyzing financial, demographic, and behavioral data. The system generates risk scores
that help banks and financial institutions make informed lending decisions. By applying advanced
predictive modeling techniques, RiskNexus reduces non-performing assets (NPAs) and enhances
the overall quality of loan portfolios, offering a reliable, data-driven approach to credit risk
management.
INTRODUCTION
In today’s banking landscape, loan defaults present a significant challenge, leading to substantial
financial losses and increased non-performing assets (NPAs). Traditional credit assessment methods
are often limited by subjectivity, lengthy processing times, and an inability to efficiently analyze
complex datasets.
RiskNexus addresses these limitations by offering an automated, data-driven solution powered by
machine learning techniques. Through intelligent data processing and predictive modeling, the
system enhances credit risk evaluation, enabling faster, more accurate, and unbiased lending
decisions.
OBJECTIVES
Develop and implement a robust machine learning model to accurately predict the probability of
loan default.
Integrate and preprocess diverse borrower data sources — including financial, demographic, and
behavioral attributes — for enhanced prediction accuracy.
Automate the risk assessment process to reduce evaluation time and human bias.
Continuously improve model performance using feedback loops and retraining.
Support informed lending decisions to minimize non-performing assets (NPAs) and improve loan
portfolio quality.
PROBLEM STATEMENT
Loan defaults pose a major challenge for financial institutions, often resulting from inaccurate
credit risk assessment. Traditional methods fail to detect complex borrower patterns, leading to
poor lending decisions. This project leverages machine learning algorithms like XGBoost and SVM
on historical financial and demographic data to accurately predict default risk, enabling smarter
and safer lending.
SYSTEM ARCHITECTURE
