PGDDS Course Work Project
Dataset : https://drive.google.com/drive/folders/16RQztUqCfJOlbooHqYlJrp6Q7iL65uZB
When the company receives a loan application, the company has to decide for loan approval based on the applicant’s profile. Two types of risks are associated with the bank’s decision:
If the applicant is likely to repay the loan, then not approving the loan results in a loss of business to the company If the 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.
When a client applies for a loan, there are four types of decisions that could be taken by the client/company):
Approved: The Company has approved loan Application Cancelled: The client cancelled the application sometime during approval. Either the client changed her/his mind about the loan or in some cases due to a higher risk of the client he received worse pricing which he did not want. Refused: The company had rejected the loan (because the client does not meet their requirements etc.). Unused offer: Loan has been cancelled by the client but on different stages of the process.