In this post I will look at linear regression to model the process determining interest rate on peer-to-peer loans provided by the Lending club. Like other peer-to-peer services, the Lending Club aims to directly connect producers and consumers, or in this case borrowers and lenders, by cutting out the middleman. Borrowers apply for loans online and provide details about the desired loan as well their financial status (such as their FICO score). Lenders use the information provided to choose which loans to invest in. The Lending Club, finally, uses a proprietary algorithm to determine the interest charged on an applicant …