Loan payment prediction using rough sets

Ruzgar B., Ruzgar N. S.

American Conference on Applied Mathematics, Cambridge, Canada, 24 - 28 March 2008, pp.124-125, (Full Text) identifier

  • Publication Type: Conference Paper / Full Text
  • City: Cambridge
  • Country: Canada
  • Page Numbers: pp.124-125
  • Marmara University Affiliated: Yes

Abstract

In small business loans, there is always a risk for nonpayment or non-refunding of loans though very detailed examinations are made about the company. In this study, behaviors that increase the risk in loans or causing non-refunding are tried to be determined by using the rough set approach. This paper will demonstrate that rough sets model is applicable to a wide range of practical problems pertaining to loan payment prediction. Moreover, the results show that the rough sets model is a promising alternative to the conventional methods for financial prediction.