Project

Loan Payment Analysis

The goal of the analysis is to use loan payment dataset to investigate and predict whether a loan borrower will be able to repay the loan on time or not. We are using all the information of the borrower to estimate the status of a loan i.e. (PAIDOFF, COLLECTION, COLLECTION_PAIDOFF). We aim to help financial institution to find out whether the borrower will be able to pay the loan.

Financial institutions attempt to mitigate the risk of lending to unworthy borrowers by performing a credit analysis on individuals and businesses applying for a new credit account. In today’s competitive industry, which is highly regulated by to government, the profitability of the banking organizations and financial institutions highly depends on proper loan analysis.

The process is based on a reviewing borrower’s information whether the borrower has the ability to repay the loan based on his income, based on the assets of borrower, institutions also check the purpose of taking loan and the overall economic environment, check on the borrower educational background, personal or business references and credit history or score is considered, when verifying whether the borrower is giving any security for the loan purpose. Although each financial institution employs its own variation of the process to determine creditworthiness, most lenders place the greatest amount of weight on a borrower's capacity.

Technology used
R, R studio

About the class

The entire knowledge discovery process is covered in this course. Topics include: setting up a problem, data preprocessing and warehousing, data mining in search for knowledge, knowledge evaluation, visualization and application in decision making.