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Problem Statement
Loan Delinquency Prediction is one of the most critical and crucial problem faced by financial institutions and organizations as it has a noteworthy effect on the profitability of these institutions. In recent years, there is a tremendous increase in the volume of non–performing loans which results in a jeopardizing effect on the growth of these institutions. Therefore, to maintain a healthy portfolio, the banks put stringent monitoring and evaluation measures in place to ensure timely repayment of loans by borrowers. Despite these measures, a major proportion of loans become delinquent. Delinquency occurs when a borrower misses a payment against his/her loan. Given the information like mortgage details, borrowers related details and payment details, our objective is to identify the delinquency status of loans for the next month given the delinquency status for the previous 12 months (in number of months).
Data Dictionary
- loan_id - Unique loan ID
- source - Loan origination channel
- financial_institution - Name of the bank
- interest_rate - Loan interest rate
- unpaid_principal_bal - Loan unpaid principal balance (described as initial loan amount)
- loan_term - Loan term (in days)
- origination_date - Loan origination date (YYYY-MM-DD)
- first_payment_date - First instalment payment date
- loan_to_value - Loan to value ratio (described as ratio of loan amount to asset value against which loan was granted)
- number_of_borrowers - Number of borrowers
- debt_to_income_ratio - Debt-to-income ratio (debt includes all the loans the borrower has taken)
- borrower_credit_score - Borrower credit score
- loan_purpose - Loan purpose
- insurance_percent - Loan Amount percent covered by insurance
- co-borrower_credit_score - Co-borrower credit score
- insurance_type - 0 - Premium paid by borrower, 1 - Premium paid by Lender
- m1 to m12 - Month-wise loan performance (deliquency in months)
- m13 (target) - loan deliquency status (0 = non deliquent, 1 = deliquent)
Evaluation Metric
Submissions are evaluated on F1-Score between the predicted class and observed.
Leaderboard
- Private LB: 238/1232 Rank
- Public LB: 438/1232 Rank