The dataset used for this project is the Prosper Loan Dataset. The dataset contains data about the details of the various loans lent to the borrowers from Prosper. Each row in the dataset represents a loan, uniquely identified by the Listing Key.
Every row in the dataset describes various attributes about the Borrower such as Employment Status, Credit Score, etc. Every row also describes other parameters such as Monthly Payments, On Time Payments, Interest Rate, etc.
The exploration of the dataset led to the discovery of the various attributes about the Borrower's in the Prosper Loan dataset:
- Califoria is the state with the Highest Number of Borrowers.
- Highest number of the loans taken by the Borrowers have been categorised as Debt Consolidation.
- The number of Borrowers who Own & Dont Own a Home are almost evenly distributed in the dataset.
- Majority of the portion of Borrowers are Employed.
- Majority of the Borrowers have an income between 3000 - 6000.
- Majority of the Borrowers have a Credit Score between 650 - 750.
- Most of the Borrowers have Prosper Scores between 4 - 8, with the Most Commonly occurring Prosper Score being 4.
- Most of the loans are given for a period of 36 Months/3 Years.
The exploration also enabled in the discovery of many correlations between the attributes of Loans, such as the Interest Rate, Monthly Payments, Loan Origination Year and On Time Payments and the Borrower's attributes such as Employment Status. The following are some of the findings: - The number of Loans have doubled in number from the previous years from 2010 - 2013, with the most loans being issued in the year 2013.
The exploration of the dataset, led to the identification of some interesting dependencies between the Borrower's Attributues and Loan Attributes.
- Borrowers with Higher Monthly Income are assigned a Higher Prosper Score.
- Borrowers with Prosper Score higher than or equal to 8, are more likely to own a home, when compared to those with score less than or equal to 7.
- Employed Borrowers take loans of Higher Amounts when compared to Borrower's who are Retired or Unemployed.
- Unemployed Borrowers are charged a Higher Interest Rate in comparison to Employed and Retired Borrowers.
- Employed Borrowers are assigned a Higher Prosper Score.
- The Interest Rate is Negatively Correlated with Prosper Score. Higher Prosper Score leads to Lower Interest Rates.
- The Loan Amounts given has constantly increased over the years.
- Higher Loan Amount also leads to a Higher Loan Term.
- The Prosper Score is Positively Correlated with On-Time Monthly Payments. The borrowers with Higher Prosper Scores are more likely to make On-Time Monthly Payments.
- A Higher Credit Score leads to a Higher Prosper Score.
- The Estimated Loss reduces with an increase in the Borrowers Prosper Score.
- Borrowers who have Fewer Current Delinquencies and Higher On-Time Payments, are more likely to have Higher Number of Loans.
- The Estimated Loss increase with the increase in Interest Rate and Yield.