To use Concepts of EDA and decipher which types of Customer defaults on a loan Business Objectives - This case study aims to identify patterns which indicate if a client has difficulty paying their instalments 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, etc. This will ensure that the consumers capable of repaying the loan are not rejected. Identification of such applicants using EDA is the aim of this case study.
In other words, the company wants to understand the driving factors (or driver variables) behind loan default, i.e. the variables which are strong indicators of default. The company can utilise this knowledge for its portfolio and risk assessment.
To develop your understanding of the domain, you are advised to independently research a little about risk analytics - understanding the types of variables and their significance should be enough).
