Loans! A liability for the borrower and an asset for the bank! Banks would certainly like to give only loans and not any of the savings schemes, such as savings accounts, fixed deposits, recurring deposits, and so on. The simple reason is that banks must pay the customer after some period and if they don't earn enough, they can't give away the interest. Though the banks would like to give away as many loans possibly can, there are plenty of reason that loans would never be given on a first-come-first-serve basis. The apparently simple reason being that if the customer defaults, the bank stands out as well as an opportunity to serve a better customer. The obvious question is how does one define a better customer and will analytical methods help here. A practical data set is the German data set, which consists of the final status of whether or not the customer fully paid back their loan and a host of other important variables.

A lot of analyses has been performed and it has now...