khagena / lending-club-data

Lending Club Data: Loan Risk Prediction Model

Lending-club-data

Lending Club Data: Loan Risk Prediction Model

• LendingClub is an American peer-to-peer lending company, headquartered in San Francisco, California.
• LendingClub enables borrowers to create unsecured (no collateral required) personal loans between $1,000 and $40,000.
• The standard loan period is three years.
• Investors can search and browse the loan listings on the LendingClub website and select loans that they want to invest in based on the information supplied about the borrower, amount of loan, loan grade, and loan purpose.
• Investors make money from interest. LendingClub makes money by charging borrowers an origination fee and investors a service fee.

Data source: https://www.kaggle.com/wordsforthewise/lending-club on Kaggle.

Investors want to earn more money with a higher interest rate but the good borrowers pay a low-interest rate. Thus, Investors look for borrows who pay a higher interest rate at a lower risk. Therefore, a better loan risk prediction model helps investors to make a data-driven decision.