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A loan is a financial transaction in which one party, often a lender, lends money, commodities, or services to another party, known as the borrower, with the expectation of repayment in the future. Loans are often made with the idea that the borrower would repay the loan amount plus any relevant interest or fees over a set period of time. And the success and failure of these lending sectors depend on the ability to evaluate the credit risk, as it has become a significant role of financial institutions/banking sector to sanction loans. Based on their requirements and business rules they approved the loan after doing the all process manually which is time taking and is also Inefficient. Automating the process to identify loan eligibility is an efficient way to reduce the amount of time it takes and the credit risk. So, predicting if the loan applicant is eligible or not helps the banks to decide to start/not to start the sanctioning loan process.