Research On The Credit Risk Prevention Of Borrower In P2P Net Loan Platform

As a new Internet financial model, P2P network loan breaks the limitation of regionalism and the circle of acquaintances of capital loan, and provides a new channel for the financing of social capital. It plays an positive role in expanding financing channels for small and micro enterprises or individual owners, meeting its individual financing needs, reducing financing costs, improving financing efficiency and other aspects, thus promoting the development of financial system in China. However, we must also realize that the P2P network lending is emerging in the industry with a relative lack of regulation. Due to imperfect credit system in China, the credit risk of borrower is difficult to prevent, and credit risk has gradually exceed other risks and become the most important risk of P2P net loan industry, which was concerned by public and also restricts the development of P2P net loan platform.This paper firstly analyzes the development situation of P2P net loan platform and platform borrowing user, deeply understanding the development of P2P net loan platform in China and characteristics of platform borrowers. Then, it carries out research on the credit risk of the borrower, and analyzes the characteristics and forming mechanism of the credit risk of the borrower by combing theories and facts of situation. Based on the data information of the borrower in Internet loan platform, this paper uses logistic regression model to analyze the influencing factors of the borrower's credit risk and finds that age, the credit score of borrower and the number of paid in full have a reverse correlation with the borrower's credit risk, while loan interest rates, loan amount, duration of the loan are in positive correlation with the borrower's credit risk. The the conclusion that the information and credit rating published by the borrower on the net loan platform will affect the occurrence of the borrower's credit risk. Finally, as for credit risk management of P2P net loan platform, this paper puts forward some suggestions such as strengthening the credit audit and post supervision on borrower, strengthening internal risk control ability of net loan platform, enhancing cooperation with the third party organizations and promoting information sharing between each net lending platform, hoping to provide valuable reference for the sustainable and healthy development of P2P net loan platform.