Risk-Analytics-with-Python

Problem Statement:

• Developing a basic understanding of risk analytics in banking and financial services and understand how data is used to minimize the risk of losing money while lending to customers.

Project Objectives:

• Examining the impact of variables such as loan type, loan purpose, business or commercial nature, and credit score on loan defaults.
• Investigating the correlation between upfront charges, loan amount, interest rates, and property values with the likelihood of default. -
• Analyzing patterns and uncovering insights into default tendencies.

Data Description

Column Name	Description
ID	Unique identifier for each row
year	Year when the loan was taken
loan_limit	Indicates if the loan limit is fixed or variable: cf - confirm/fixed, ncf - not confirm/not fixed
Gender	Gender of the applicant: male, female, not specified, joint (in case of applying as a couple)
loan_type	Type of loan (masked data): type-1, type-2, type-3
loan_purpose	Purpose of the loan (masked data): p1, p2, p3, p4
business_or_commercial	Specifies if the loan is for a commercial establishment or personal establishment
loan_amount	Amount of the loan
rate_of_interest	Interest rate applied to the loan
Upfront_charges	Down payment made by the applicant
property_value	Value of the property for which the loan is taken
occupancy_type	Occupancy type for the establishment
income	Income of the applicant
credit_type	Credit type of the applicant: EXP, EQUI, CRIF, CIB
Credit_Score	Credit score of the applicant
co-applicant_credit_type	Credit type of the co-applicant
age	Age of the applicant
LTV	Loan-to-value ratio of the applicant
Region	Region of the applicant
Status	Loan status: 1 - defaulter, 0 - normal

Methodology

• Data loading and exploaration
• Data cleaning
• Feature Enginnering
• Univariate Analysis
• Bivariate Analysis
• Multivariae Analysis
• Impact of ddifferent variabes on defaulters
• Insights
• Key Findings
• Recommendations

Colab Notebook

• You can access the full Python analysis on Google Colab using the following link: View the notebook

PDF Report

A detailed analysis report is available in the following PDF file: View Report.