Profit per loan

Written by Evispot. Posted in Glossary, p.

Profit per loan is the total profit calculated for every loan expressed as a percentages. The profit per loan is calculated by subtracting all the revenues with all the cost.

Profit per loan = (Loan Income – Loan cost)/Loan amount 

Loan cost besides the user added costs includes the Expected loss based on the PD of each loan.

© Evispot 2022 All rights reserved.

Machine learning in credit decisions

Leveraging machine learning for smarter lending and obtain insights into the technology behind 100% transparent machine learning models.

A link to download the file will be sent to your inbox.

Never see this message again.