šObjective
In order to monitor and assess bank's lending activities and performance. This report aims to provide insights into key loan-related metrics and their changes over time. The report will help Bank make data-driven decisions, track Bank loan portfolio's health, and identify trends that can inform lending strategies.
ā Dataset
Worked With Dataset of 38,576 rows. The data spans 2021-year performance of 12 months and included features like Total Payment, Loan Amount, interest rate, DTI, Loan Status, Terms, etc.
ā Procedure
I Began by Taking Raw Data from Data Tutorials and cleaned it by Addressing Null values, standardizing strings variables and Making Dates Format consistent. Next, I import csv file into the SQL to find out Key Metrics. Finally, I built 3 Dashboard to visualize my Findings.
šKey Insights:
ā Primary KPIās Findings: -
Total Loan Applications: Customer engagement with bank from count of loans received stands at 38,576.
Total Funded Amount v/s Total Received Amount: Difference between Total Received and Total Funded Amount is $37,313,858. Showing Profitability in Bankās Lending Activities.
Ratios: Average Interest Rates stands at 12% and The Average Debt-to-Income (DTI) at 13.27%.
Good v/s Bad Loan: 86.18% (33.2K) are in Good Loan Category while 13.82% (5.3K) loans are in Bad loan indicating strong repayment performance.
ā Secondary KPIās Insights: -
Term: More loan applications are for short-term loans than long-term (36 months vs. 60 months).
State Wise Distribution: Geographical insights to identify high-demand states.
Employee Length Trends: 10+ years tenure accounts for the highest applications (8.9K).
Purpose of Loan: Top reasons include debt consolidation (18K applications), credit cards (5K), and home improvement (3K).
Homeownership status: Mortgage and Rent have Highest Applications, and grade categories provides more Clear Insights.
ā Trends Analysis:
Monthly Loan Applications: Show a consistent upward trend from Feb onwards, indicating a growing demand for loans with peak in December (4.3K) showing steady growth (6.9% MoM).
Monthly Average Interest Rate: fluctuates slightly across the year but remains relatively stable between 11.4% and 12.4%. In December, there is a sharp increase in the average interest rate (3.5%).
DTI: shows gradual growth with mid-year fluctuations, peaking in December, jumping from 13.32% to 13.66%.
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