Loan Pricing API Reference

This page documents the API for the Risk-Based Loan Pricing function in Pypulate.

Risk-based loan pricing model.

loan_pricing(loan_amount, term, pd, lgd, funding_cost, operating_cost, capital_requirement, target_roe)

Calculate risk-based loan pricing.

Parameters:

Name	Type	Description	Default
loan_amount	float	Loan amount	required
term	float	Loan term in years	required
pd	float	Probability of default (annual)	required
lgd	float	Loss given default (as a decimal)	required
funding_cost	float	Cost of funds (annual rate)	required
operating_cost	float	Operating costs (as percentage of loan amount)	required
capital_requirement	float	Capital requirement as percentage of loan amount	required
target_roe	float	Target return on equity (annual rate)	required

Returns:

Type	Description
dict	Recommended interest rate and components