Abstract: A system for classifying to apply for a microloan by a user is provided. The system includes user device associated with a user, and loan applying user classification system. The loan applying user classification system 106 collects raw data from at least one of (i) one or more programs on the user device directly; (ii) the one or more programs indirectly through the network or (iii) both. The raw data includes mobile brand, screen height, demographic details, mcc, session timestamp, sessionid, session duration, etc. The loan applying user classification system is configured to (i) pre-process the raw data to obtain pre-processed data; (ii) identify representative set of features (i.e. training dataset) from the pre-processed data; (iii) balance an imbalanced training dataset to obtain balanced dataset; and (iv) generate a classification model using balanced dataset to classify in applying for micro-loan by the user.