loan-default-risk
Predicting Loan Default Risk
Predicting loan default risk is a critical part of money lending because lenders must know whether giving out a loan will result in profit or loss. Generally, loans are profitable and generate revenue for banks because of interest. But, sometimes a borrower may default which results in a loss of money for lending banks. So, it is important that the lender is able to estimate the risk of a borrower being defaulted before borrowing him/her the money.
Given the several factors that might affect borrower default rate, it may be infeasible to come up with good estimates manually. The objective of this project is to explore whether or not we can employ machine learning models to better predict the loan default risk of borrower. Using exploratory data analysis, we may be able to describe loans and the financial situations of their borrowers, we may also determine the key relationships between default rates and a few other features. Also, we will investigate key relationships between loan default risk and customer behavior.