Credit EDA case Study

Introduction:

This case study aims to give us an idea of applying EDA in a real business scenario. In this case study, we develop a basic
understanding of risk analytics in banking and financial services and understand how data is used to minimise the risk of losing
money while lending to customers.

Problem Statement:

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.