Lending Club Case Study

A python program to study the risk behaviour of the loan application for the provide loan data set.

General Information

A python program to study the risk behaviour of the loan application for the provide loan data set.
The application of EDA is to understand how consumer attributes and loan attributes influence the tendency of default.
If the loan applicant is not likely to repay the loan, i.e. he/she is likely to default, then approving the loan may lead to a financial loss for the company.
We have been provided with the Private Data of Lending Club. The complete loan data for all loans issued through the time period 2007 to 2011.

Approximately 14% of loans in the provided dataset are defaulted.
Maximum number of loan disbursed is from 5000 to 10000. Maximum number of loan disbursed in the year 2011 alone which is more than 50%.
Predominantly, most of the loan applicant either have mortgage something or living in a rented place, and the same category reflects for the defaulters, combining both of them are 93% of default case.
Giving loan for debt consolidation purpose is a riskier business, more than half of them (out of total default case) can default.
10+ years employees contribute for loan defaulting upto 30%, i.e., one third of total default cases.
Avoid giving loan to the applicant who has even one public derogatory record.
When dept payment to income ratio is higher than 15, they are likely to default.
Other than very income group, annual income does not affect the loan defaulting.
Grade employee (E, F & G) have given the most profits to the lending company with high interest rate suitably with 15-22% rate.
States WY has the highest average(median) loan amount that was charged off. This state must be looked into by the LC for further investigation.

This project was the case study from the Upgrad. We are thankful to the Upgrad & IIIT, Bangalore for providing the necessary knowledge & support.
Other references is taken form the various internet source.

Created by [@vijaypss] - feel free to contact me!