<![CDATA[Non-performing loans remain a critical challenge for cooperatives as they can undermine financial stability, erode member trust, and impede institutional growth. This study develops a predictive model for cooperative loan eligibility using supervised machine learning techniques and a novel three-class classification framework, Approved, Consideration, and Rejected, to support more objective and transparent decision-making. A dataset of 1,000 borrower records containing demographic and financial attributes was analyzed using Naive Bayes, Decision Tree, and Random Forest algorithms implemented in RapidMiner. The Random Forest algorithm achieved the best predictive performance with an accuracy of 96.02%, demonstrating its robustness and reliability compared to the other models. The proposed three-class system differentiates this study from conventional binary classification approaches, enabling finer distinctions among borrower categories and promoting fairness in cooperative credit evaluations. The findings provide practical guidance for cooperatives to adopt data-driven, transparent, and accountable decision-making systems that reduce manual bias and strengthen financial inclusion. Overall, the proposed three-class model built through a supervised learning framework offers a reliable, fair, and scalable solution to support sustainable lending practices and enhance risk management in cooperative institutions.]]>
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