Predictors from loan standard behavior
There are two amounts of points (we.elizabeth., the personal and you can social accounts) that determine new borrower’s default behavior. In regard to the non-public-peak circumstances, the current literature into on the internet P2P lending platforms generally focuses primarily on three types of items you to definitely dictate an individual’s standard choices, particularly, difficult pointers, smooth advice, and you may cheap cam of individuals (Freedman and you may Jin 2010). As previously mentioned in past times, difficult advice identifies informative suggestions which are often common objectively, instance sex (Barasinska 2009), many years, battle, physiological have (Sydnor and you will Pope 2009; Pope and you will Sydnor 2011), financing dimensions, debtor financial situations (Collier and you can Hampshire 2010), fico scores, money, and you can possessions (Emekter mais aussi al. 2015; Lin 2009; Serrano-Cinca et al. 2015). 2015; Freedman and Jin 2010; Krumme and Herrero-Lopez 2009; Lin et al. 2009; Serrano-Cinca et al. 2015); in reality, credit history is the most significant factor influencing an individual’s standard behavior (Serrano-Cinca et al. 2015).
