Loans especially mortgage loans play a vital role in the banking industry of many countries. Loans to individuals are considered as more risky than business loans in many situations. Due to these two reasons, the efficiency of prediction of loan repayment credibility is important for the welfare of both households and banking system and hence it is also important for the entire society. Data mining can solve the problem by analysing historical data and predict the behaviour of a customer. For

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... ediction purpose various tools are used. Classification is the popular modeling technique to predict the loan repayment capability of a customer. Classification can be performed using different algorithms and accuracy also varies with the algorithms. Fuzzy logic system maps the nonlinear an input data set to a scalar output data. Fuzzy logic system consists of four main parts such as Fuzzification, Rules, Inference engine and Defuzzification. In this research, a fuzzy based loan repayment capability prediction model is introduced. The main objective of this paper is to implement fuzzy model that incorporates artificial intelligence approach for the prediction. The experiments were being done using python programming and the data was selected from a premier banking institution.