🏦 Loan Interest Rate Analysis - Python Statistical Project

A comprehensive machine learning project analyzing loan interest rates using the Bondora P2P Loans dataset to help fintech companies personalize loan offers.

📊 Key Visualizations

Interest Rate Distribution by Education Level

Box plot analysis showing how education levels impact loan interest rates

Correlation Analysis Dashboard

Scatter plot matrix revealing relationships between key financial metrics and interest rates

🎯 Key Findings

• Average interest rate: 27.29% (±18.03% std dev)
• 10,543 borrowers received less than their applied amount
• High-risk customers: 28.86% vs low-risk: 26.99% average interest
• Strongest predictor: Amount of Previous Loans (correlation: -0.175)

🔍 Statistical Insights

• Education Impact: Clear variation in interest rates across education levels
• Previous Loans: Negative correlation (-0.175) - more previous loans = lower rates
• Income Effect: Minimal correlation (-0.0122) with interest rates
• Risk Segmentation: 1.87% higher rates for high-risk customers