I'm looking at a dataset known as German Credit Data, available here:


According to the description... "the dataset classifies people described by a set of attributes as good or bad credit risks. Comes in two formats (one all numeric)."

That being said, one of these numeric attributes is the installment rate percentage. Could someone please explain what that means?


The actual term is, as per the data, "Installment rate in percentage of disposable income". This comes into picture if you are paying EMI (installment payments) for any loan, like house, car, TV/Electronic Goods, other loans. When a bank extends you loan, like home loan, it ensures that your total outgo on EMIs does not exceed certain percentage limit of your take home salary/income. This is done to prevent you from defaulting by taking larger loans that you can reasonably service. The exact percentage varies between countries. So all your EMIs together should not exceed this percentage.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.