Update loan_model.py

loan_model.py

@@ -1,14 +1,12 @@
-import numpy as np
-
 def predict_default(income, loan_amount, credit_score, employment):
-    # Mock risk calculation (replace with real model)
-    base_risk = loan_amount / (income * 12) * 0.3
-    credit_factor = 1 - (credit_score / 850)
-    emp_factor = 1.2 if employment == "Unemployed" else 1.0
-    risk = min(0.95, base_risk * credit_factor * emp_factor)
-    
-    return {
-        "High Risk": risk,
-        "Medium Risk": max(0, (1 - risk) * 0.7),
-        "Low Risk": max(0, (1 - risk) * 0.3)
-    }
+    # Simplified risk calculation
+    risk_score = (loan_amount / (income * 0.3)) * (1 - (credit_score/850))
+    if employment == "Unemployed":
+        risk_score *= 1.5
+        
+    if risk_score > 0.7:
+        return {"High Risk": risk_score, "Medium Risk": 0.2, "Low Risk": 0.1}
+    elif risk_score > 0.4:
+        return {"High Risk": 0.3, "Medium Risk": risk_score, "Low Risk": 0.2}
+    else:
+        return {"High Risk": 0.1, "Medium Risk": 0.3, "Low Risk": risk_score}