Company main objective is to facilitate loan to borrowers through a fast online interface. Aim of this analysis is to identify risky loan applicant, to avoid lending loans to these applicants which are the largest source of financial loss. Applicant who refuse to pay or runs away with money owed cause largest amount of loss to the lenders. With this analysis it will help company to understand the driving factors behind loan default
We are having data of 5 years (2007-2011) which contain information of past loan applicants . We have to analyze factor which help to decide a person is likely to pay loan on time or not. This will be helpful for company to decide for lending loan to borrower.
On the basis of analysis we can conclude that -
- Borrower verification is not having much impact on its loan status. 2.To avoid risk lender should sanction less amount of loan than amount request , to suspicious borrower
- Most loan are applied for debt consolidation , so while approving loan for that pay more attention
- Borrowers who are having their own property are much safer to lend money
- Short term loan is much safer than long term
- Borrower having low grade and Higher experience are much safer loan applicant.
- library - version 3.0
- Inspired by learning session of this assignment by upgrad
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