International Journal of Science, Engineering and TechnologyAuthors: Ashish Uttam Kakade, Professor Bhosale Sachin Bajirao, Dr. Khatri A. A, Professor Bangar Abhishek Popat
Abstract: Artificial Intelligence (AI) is widely used in loan credit approval to assess applicants' creditworthiness. However, complex AI models often lack transparency. Explainable Artificial Intelligence (XAI) helps explain loan approval and rejection decisions using techniques such as SHAP and LIME. This paper reviews existing research on XAI in credit assessment, focusing on transparency, interpretability, and fairness. It also identifies key challenges and future research directions for developing reliable and understandable AI-based loan approval systems.
