Loan_Prediction

Predict the amount of loan repaid and the status of the loan as of the 360th day

Attached alongside this file is a data file named: Data Science Assessment.csv. Each row in this file consists of a single loan. Each loan has two outcome variables (explained in the following section): AmountPaid360 and LoanStatus360. The first of these variables is a continuous numerical value, the second is a categorical variable. Your objective is:

• build a regression model to predict AmountPaid360 and a classification model to predict LoanStatus360 OR both (your choice)
• evaluate the performance of your model(s)
• briefly communicate your process for model building, your model results, any limitations that you faced, and what next steps you might take with additional data access

Dataset Structure

Input Features

• Product: The product type purchased by the customer
• CustomerGender: Self-explanatory
• Location: The location where the loan was issued. (Also includes a long-tail of legacy locations)
• Region: The sales region where the device was purchased. Includes many regions which have since been changed. The current set of main sales regions are Regions 1-7.
• TotalPrice: The total amount to-be-paid by the customer over the course of the loan (including deposit and daily payments)
• StartDate: The day on which the customer's loan became active
• Deposit: The initial deposit required from the customer prior to loan activation
• DailyRate: The amount that the customer must pay daily in order to continue to use their device
• TotalDays: The number of days for which the customer is expected to continue paying the daily rate
• AmountPaid30: The amount that the customer had repaid as of the 30th day of their loan
• AmountPaid60: The amount that the customer had repaid as of the 60th day of their loan

Outcome Variables

• AmountPaid360: The amount that the customer had repaid as of the 360th day of their loan
• LoanStatus360: The status of the loan as of day 360:
  • Active: The customer is still actively repaying their loan.
  • Blocked: The customer has had their account blocked after more than 30 days without a payment.
  • Finished Payment: The customer has successfully repaid their loan.