Logistic regression for the German credit screening dataset

Millions of applications are made to a bank for a variety of loans! The loan may be a personal loan, home loan, car loan, and so forth. From a bank perspective, loans are an asset for them as obviously the customer pays them interest and over a period of time the bank makes profit. If all the customers promptly pay back their loan amount, all their tenure equated monthly installment (EMI) or the complete amount on preclosure of the principal amount, there is only money to be made.

Unfortunately, it is not always the case that the customers pay back the entire amount. In fact, the fraction of people who do not complete the loan duration may also be very small, say about five percent. However, a bad customer may take away the profits of may be 20 or more customers. In this hypothetical case, the bank eventually makes more losses than profit and this may eventually lead to its own bankruptcy.

Now, a loan application form seeks a lot...