If you have worked for more than 5 years you are less likely to pay your loan than people who just started working!

This is an excellent post on how to use IBM Watson Analytics on Lending Club data. For those who may not know - Lending Club is one of the largest platforms for peer-to-peer (P2P) lending. It promises higher returns to the lenders and better experience for the borrowers. There were several key findings from this analysis. Top 3 are listed below-

  1. Default rate is highest in Nevada (maybe because people tend to use the money in the slot machines or game tables of Sin City instead of putting the money to good use for the purpose they used to get the loan in the first place) Any guesses for which state has the lowest - Well, its Wyoming! Who would have guessed that. :) Go Cowboys and Cowgirls!
  2. Another key finding was to the influence of the reason for the loan on the default rates. People tend to default half as much for auto and wedding expenses related loans than they tend to for renewable energy. Never trusted those green types. 
  3. And the last but the most alarming finding was that folks who have worked for more than 5 years tend to default more than people just starting out. This is interesting since you tend to make more money over time in any profession (no matter which profession it is). I guess work makes you less honest. If you have other reasons why this might be - feel free to tweet me at @shankar_sahai

I wonder how default rates varies on the gender x-axis.

For transparency, Lending Club provides loan data to the public. This data can be downloaded from the Lending Club website.