BUSINESS RESEARCH METHODOLOGY

Group A6

Aditi - 1106 || Aniruddha Nath - 1110

Divya Sagar - 1122 || Kunal Garg - 1134
Kalluru Surya - 1131 || Nabajyoti Das - 1140
Srilekha Budigina - 1167
 INTRODUCTION

● Considered Credit Risk data to get an idea of the loan patterns of the
people having different incomes

● Making a claim that the loan amount will be dependent upon the income
level, credit risk history and the loan amount term of the loan applicants
 LITERATURE SURVEY

● The economy of a country is also dependent upon the amount of

money borrowed by the population

● People borrow from banks, financial institutions and shops

 PROBLEM STATEMENT

● To determine whether the loan amount of an individual depends on

applicant income, credit risk history and loan amount term

● To determine as to what extent the loan amount of an individual

depends on the above variables
 DATA SOURCE

● Secondary data source from online data science website “Kaggle”

● Data related to various variables like gender, education, applicant

income, loan amount, credit risk history, loan amount term, etc. was
collected for 981 loan applicants
RESEARCH METHODOLOGY
● Correlation
● Linear Regression
● Exploratory factor analysis
 CONCLUSION AND FUTURE RESEARCH

We observe that the loan amount depends on the applicant income (p value of <0.001),
co-applicant income (p value of <0.001) and the loan amount term (p value of 0.021).
Out of these three dependent variables, the loan amount depends the most on the
applicant's income (Pearson's rank correlation coefficient of 0.552) followed by the
co-applicant's income (Pearson's rank correlation coefficient of 0.179)
THANK YOU