Exploratory Data Analysis on (Should This Loan be Approved or Denied?)
Context of the problem The Small Business Administration (SBA) is a United States Government Agency formed in 1953 that provides support to entrepreneurs and small businesses. SBA acts much like an insurance provider to reduce the risk for a bank by taking on some of the risks by guaranteeing a portion of the loan. In the case that a loan goes into default, SBA then covers the amount they guaranteed. Since SBA loans only guarantee a portion of the entire loan balance, banks will incur some losses if a small business defaults on its SBA-guaranteed loan. Therefore, banks are still faced with a difficult choice as to whether they should grant such a loan because of the high risk of default.
Description about the data files Here we are using a dataset from the U.S SBA which includes Historical data from 1987 through 2014 (899,164 observations).
Link of the dataset - The link to the dataset is given below.
https://www.kaggle.com/mirbektoktogaraev/should-this-loan-be-approved-or-denied