A classification problem where you need to predict if the loan gets approved or not. Since it is a simple classification problem we will use a Logistic regression classifier.
Logistic regression is another technique borrowed by machine learning from the field of statistics. It is the go-to method for binary classification problems (problems with two class values). Logistic regression is named for the function used at the core of the method, the logistic function. The logistic function also called the sigmoid function was developed by statisticians to describe properties of population growth in ecology, rising quickly and maxing out at the carrying capacity of the environment. It’s an S-shaped curve that can take any real-valued number and map it into a value between 0 and 1, but never exactly at those limits. Functions - 1 / (1 + e^-value)