The dataset contains 113937 rows and 22 columns. Most of the columns are numeric but we also have categorical variables(both ordinal and nominal) and datetime variables. However, I will be working with just 84853 rows and 11 of those columns. The dataset can be found here, with feature documentation available here
I had to separate the LoanOriginationQuarter column so as to get the raw quarter values without the year attached
Prosper projects to averagely make 5-15% return on loans.
Loan terms are either year (12 month) or 3 years (36 months) or 5 years (60 months) with most of the loans having a 3-year term
Most loans are taken in Q4 followed by Q1. That indicates that most loan are borrowed between October and March. Although the number of loans originating in Q4 is higher, Q1 is bigger in terms of volume. Seasoality has no effects on the loan amounts or the estimated returns
The data suggests that on average it costs customers roughly 2.5% of borrowed amount to maintain a loan annually.
Most amount of loans are taken by earners in the 1-74,999 range and is generally around 5-10k
Most borrowers have monthly income around 5000 and seldom above 20000
Majority of borrowers have verifiable income. However, whether the borrower owns a home or has verified income does not determine the estimated returns the bank is to make on the loan
Loan amount increases across the three terms with better ratings
APR decreases with better ratings while Loan amount increases with better ratings Having a higher Prosper rating increases the amount of loan a borrower can access and consequently lesser APR
Prosper projects to averagely make 5-15% return on loans.
Loan terms are either year (12 month) or 3 years (36 months) or 5 years (60 months) with most of the loans having a 3-year term. Longer loan terms bring in the highest returns. Larger loans also have lesser APRs where the estimated returns are roughly around 5-15% range while the lesser loan amounts have higher APRs that are largely within 0-25% range.
Most loans are taken in Q4 followed by Q1. That indicates that most loan are borrowed between October and March. Although the number of loans originating in Q4 is higher, Q1 is bigger in terms of volume. Seasoality has no effects on the loan amounts or the estimated returns
APR decreases with better ratings while Loan amount increases with better ratings Having a higher Prosper rating increases the amount of loan a borrower can access and consequently lesser APR.
It costs customers roughly 2.5% of borrowed amount on average to maintain a loan annually.