lord-shaz / Vehicle-Loan-Default-Prediction

The objective of this project is to predict the probability of borrower defaulting on a vehicle loan in the first EMI (Equated Monthly Installments) on the due date.

LTFS-Data-Science-FinHack.

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The objective of this project is to predict the probability of borrower defaulting on a vehicle loan in the first EMI (Equated Monthly Installments) on the due date.

Overview:

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End-user: Financial institution

Objective: The objective of this project is to predict the probability of loanee or borrower defaulting on a vehicle loan in the first EMI (Equated Monthly Instalments) on the due date.

Dataset: The Vehicle Loan Default Prediction dataset includes following features:

Dependent feature: loan_default

Independent features: disbursed_amount, asset_cost, ltv, PERFORM_CNS.SCORE etc. The dataset contains 345550 rows and 41 features.

Data Cleaning:

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• Combining training and testing data.
• Checking missing values in data.
• Imputing Employment.Type missing values with 'Self employed' values.
• Checking the outliers using boxplot.
• Removing the outliers of 'disbursed_amount' & 'asset_cost' features.

Feature Enginnering & Feature Selection:

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• Calculating Age column using 'Date.of.Birth'.
• Calculating 'AVERAGE.ACCT.AGE' and 'CREDIT.HISTORY.LENGTH' in months.
• Creating bins of PERFORM_CNS.SCORE and LTV.
• Replacing Values of PERFORM_CNS.SCORE.DESCRIPTION.
• Generating New Features like 'ACTIVE.ACCTS','CURRENT.BALANCE' etc.
• Dropping irrelevant columns like 'DisbursalDate', 'Current_pincode_ID' ,'NO.OF_INQUIRIES' etc.

Model Creation:

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CatBoost Classifier: ROC AUC Score: 0.6442

AUC ROC:

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Thank You!

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