# Program To Predict Loan Eligibility in Python Language Assignment Solution

July 09, 2024
Dr. Andrew
🇨🇦 Canada
Python
Dr. Andrew Taylor, a renowned figure in the realm of Computer Science, earned his PhD from McGill University in Montreal, Canada. With 7 years of experience, he has tackled over 500 Python assignments, leveraging his extensive knowledge and skills to deliver outstanding results.
Key Topics
• Instructions
• Objective
• Requirements and Specifications
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## Instructions

### Objective

Write a python assignment program to predict loan eligibility.

## Requirements and Specifications

Additional Project : Bancassurance

Description

Background and Context

Best insurance company and My Bank have set up a Bancassurance(Bancassurance is a relationship between a bank and an insurance company), now using the data of liability customers of My Bank, The Best insurance company wants to convert customers with both a life insurance policy and an account in My bank to loan customers(taking a loan against a life insurance policy)

A campaign that the company ran last year for liability customers showed a healthy conversion rate of over 12.56% success. You are provided with data of customers who have an account in My bank and life insurance policy in the Best insurance company

You as a data scientist at the Best insurance company have to build a model to identify the positively responding customers who have a higher probability of purchasing the loan. This will increase the success ratio and reduce the cost of the campaign.

Objective

• To predict whether a liability customer will buy a loan or not.
• Which variables are most significant for making predictions.
• Which segment of customers should be targeted more.

Source Code

```import pandas as pd import numpy as np import matplotlib.pyplot as plt from sklearn.model_selection import train_test_split from sklearn.linear_model import LogisticRegression from sklearn import preprocessing, tree import seaborn as sns from sklearn.feature_selection import SelectKBest from sklearn.feature_selection import chi2 ### Read Data df = pd.read_csv('My_Bank.csv') df.head(10) print(f"This dataset has {len(df)} rows") ### Show the number of NaN values in each column df.isnull().sum() ### Remove non-useful columns df = df.drop(columns = ['CUST_ID']) ### Convert ACC_OP_DATE to Numeric df['ACC_OP_DATE'] = pd.to_datetime(df['ACC_OP_DATE']).dt.strftime("%m%d%Y").astype(int) df.head(5) ### Categorize object columns object_columns = df.select_dtypes(include=['object']).columns for col in object_columns: values = df[col].unique() values_dict = {x[0]: x[1] for x in zip(values, range(len(values)))} df[col] = df[col].map(values_dict) ### Normalize data df_norm = (df-df.min())/(df.max()-df.min()) df_norm.head() ### Extract target column Y = df_norm['TARGET'] X = df_norm.drop(columns=['TARGET']) X.head() print(f"There are {len(X.columns)} variables and {len(X)} records") ### Display correlation map to see the relation between variables f = plt.figure(figsize = (10,10)) plt.matshow(df_norm.corr(), fignum = f.number) plt.colorbar() plt.xticks(range(len(df_norm.columns)), df_norm.columns, rotation=90); plt.yticks(range(len(df_norm.columns)), df_norm.columns); plt.show() ### Split data into train and test X_train, X_test, Y_train, Y_test = train_test_split( ... X, Y, test_size=0.3, random_state=42) ### Build LogisticRegression Model model = LogisticRegression() model.fit(X_train, Y_train) ### Score model.score(X_test, Y_test) ### Create a plot of model's accuracy vs. K best features scores = [] for k in range(1, len(X.columns)): X_new = SelectKBest(chi2, k = k).fit_transform(X, Y) X_train2, X_test2, Y_train2, Y_test2 = train_test_split(X_new, Y, test_size=0.3, random_state=42) model = LogisticRegression() model.fit(X_train2, Y_train2) score = model.score(X_test2, Y_test2) scores.append(score) plt.plot(range(1, len(X.columns)), scores) plt.grid(True) plt.xlabel('Number of Features') plt.ylabel("Model's Accuracy") ### Pick optimal number of features kopt = range(1, len(X.columns))[np.argmax(scores)] print(f"The optimal number of features is {kopt}, giving a model accuracy of {max(scores)*100.0}%") Xopt_lr = SelectKBest(chi2, k = kopt).fit_transform(X, Y) # Build a new model but only with best features ### Select best features X_new = SelectKBest(chi2, k=kopt).fit_transform(X, Y) ### Split into Train and Test with new X values X_train2, X_test2, Y_train2, Y_test2 = train_test_split(X, Y, test_size=0.3, random_state=42) ### Build Model model2 = LogisticRegression() model2.fit(X_train2, Y_train2) model2.score(X_test2, Y_test2) # Decision Tree treeClf = tree.DecisionTreeClassifier() treeClf.fit(X_train, Y_train) treeClf.score(X_test, Y_test) ### Select K best features and run again the decision tree scoresTree = [] for k in range(1, len(X.columns)): X_new = SelectKBest(chi2, k = k).fit_transform(X, Y) X_train3, X_test3, Y_train3, Y_test3 = train_test_split(X_new, Y, test_size=0.3, random_state=42) treeClf = tree.DecisionTreeClassifier() treeClf.fit(X_train3, Y_train3) score = treeClf.score(X_test3, Y_test3) scoresTree.append(score) plt.plot(range(1, len(X.columns)), scores) plt.grid(True) plt.xlabel('Number of Features') plt.ylabel("Model's Accuracy") koptTree = range(1, len(X.columns))[np.argmax(scoresTree)] print(f"The optimal number of features for Decision Tree is {koptTree}, giving a model accuracy of {max(scoresTree)*100.0}%") Xopt_tree = SelectKBest(chi2, k = koptTree).fit_transform(X, Y) ### Plot Scores of both LogisticRegression and DecisionTree vs. Number of features plt.plot(range(1, len(X.columns)), scores, label = 'LogisticRegression') plt.plot(range(1, len(X.columns)), scoresTree, label = 'DecisionTree') plt.legend() plt.grid(True) plt.xlabel('Number of Features') plt.ylabel("Model's Accuracy") plt.show() ```

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