This Loan Status Dashboard provides a comprehensive overview of the performance and trends in loan statuses across various categories. It visualizes key metrics such as loan performance based on employment title, term length, employment duration, and loan grade. The dashboard aims to help financial analysts, loan officers, and stakeholders identify patterns in loan performance, understand risk factors associated with bad loans, and make data-driven decisions.
Objectives for Data Analysis:
Identify Risk Factors: Analyze patterns that lead to bad loans, such as specific employment titles, term lengths, and credit grades. Portfolio Health Assessment: Provide a snapshot of the current loan portfolio's health by visualizing the proportion of performing (good) and non-performing (bad) loans. Predictive Insights: Enable stakeholders to forecast potential defaults by understanding the influence of employment length and other borrower characteristics. Improving Loan Approval Strategies: Leverage insights to refine loan approval criteria by identifying job roles, loan terms, and credit grades associated with higher risks.
Key Performance Indicators (KPIs):
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Loan Status Distribution: Displays the proportion of good loans (current) versus bad loans (charged off). This KPI helps assess the overall health of the loan portfolio.
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Loan Status by Term Length: Shows loan status (good/bad) categorized by term length (36 months vs 60 months). This KPI provides insight into whether longer or shorter loan terms are more prone to defaults.
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Loan Status by Employment Title: Breaks down loan performance based on the borrower's employment title, allowing analysts to determine which job roles are associated with higher default risks.
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Loan Status by Employment Length: Examines how the length of employment affects loan performance, which can be crucial for understanding the relationship between job stability and loan repayment.
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Loan Status by Grade: Visualizes the loan status by the assigned credit grade (A to G). This KPI helps in understanding how credit grades correlate with loan performance, aiding in risk assessment.
🔎Tools Used for dashboard: Microsoft PowerBI.
We can find out some inferences about good loans and bad loans using this dashboard, such as-
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Percentage of 'Good Loans' are more for 'B' grade employees followed by 'A' and 'C'.
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Term lengh of 36 months is looking comfortable for employees which yields more percentage of 'Good loans' as compared to 60 months term length.
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Highest percentage of Good loans are from '10+' years Employment length.
This dashboard is a powerful tool for financial institutions to monitor loan performance, mitigate risk, and optimize lending strategies based on data-driven insights.