Credit-appraisal-Banking-EDA

To identify patterns which indicate if a client has difficulty paying their installments which may be used for taking actions such as denying the loan, reducing the amount of loan, lending (to risky applicants) at a higher interest rate 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.