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Fuzzy Logic System for Loan Evaluation in Islamic Banking<br />

Norazra Izzati Binti Azwan<br />

Supervisor: Assoc. Prof. Dr. Abd. Fatah Bin Wahab<br />

Bachelor of Science (Financial Mathematics)<br />

School of Informatics and Applied Mathematics<br />

Due to the uncertainty and injustice problem in determining personal loans, the study<br />

aims to facilitate users to check the number of eligible loans through online. This study is<br />

to achieve the following objectives which are to identify the basic criteria for a fuzzy<br />

determination that influence the assessment of loans for the Islamic banking system, to<br />

develop a fuzzy logic system for loan evaluation based on the fuzzy logic concepts for<br />

controlling the uncertainty and inaccuracy of data using human subjective judgments by<br />

applying data from survey results. In this project, the fuzzy logic method introduced by<br />

Lotfi Zadeh in 1965 was used to anticipate the credible creditworthiness of borrowers.<br />

The MATLAB software was used to produce a loan evaluation system in Islamic banking.<br />

Conclusion, this project is developed to facilitate banks that adopt a Syariah-compliant<br />

system and produce a fair, simple and detailed fully machine system.<br />

848 | UMT UNDERGRADUATE RESEARCH DAY 2018

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