A New Decision Making Tool for Feature Selection and Credit Evaluation of Loan Applicants

In this study, an evaluation model is developed to assess the credibility of the loan applicants. The proposed model is a multicriteria decision making (MCDM) problem consisting of numerous criteria by integrating analytic hierarchy process (AHP) and genetic algorithm (GA). In the case of apparent consensus for several measures, the research clearly indicates that both quantitative and qualitative information must be employed in evaluating loan applicants. The AHP approach is widely used for MCDM in various scopes. In 2008 Lin et al proposed the adaptive AHP approach (A^3)in order to decrease the number of steps for checking the inconsistency in the AHP model. The study presents a MCDM model by developing the new adaptive AHP approach (N_A^3) already proposed by Herrera-Viedma in 2004. The proposed model has led to fewer calculations, and less complexity. The model was applied to 200 clients in order to show its efficiency and applicability. A brief look at the implementation of the model showed that it is significantly valid in selecting clients with respect to the known criteria, besides decision making regarding the determination of the assessment factors.