Indian Credit Risk Prediction Model

This project aims to create a credit risk model catered specifically to Indian borrowers. We're left to interpret some specifics, as certain questions were skipped, but it's clear the following was requested:

Ideal Candidate:
• Proficient in statistical modelling and analysis, especially in the field of credit risk.
• Understanding of Indian financial landscape and systems.
• Be able to draft detailed, coherent, and extensive project proposals, outlining your specific plan of action.

Project Proposal Essentials:
• Provision of a clear strategy for creating the credit risk model.
• Potential statistical methods to be considered for utilization.
• Explanation about the interpretation of the results and the corresponding strategies which will be recommended based on these.

The goal is to provide a reliable means to predict the likelihood of default from Indian clients, assess their creditworthiness, and identify potential risks. Successful freelancers will thereby contribute to informed and efficient decision-making in lending processes.

You are requested to create an Indian credit risk (default) model, using the data provided in the spreadsheet.

Dataset (refer to the attachment)

Data Description ( refer to the attachment)

Hints:

Dependent variable - We need to create a default variable that should take the value of 1 when net worth next year is negative & 0 when net worth next year is positive.
Validation Dataset - We need to build the model on a training dataset and check the model performance measures on the validation dataset.