Working Experience,Educational Background And Credit Success Rate

Peer-to-peer Lending is one of the fastest growing online lending models in recent years.After a few years' development,the expansion of the P2P industry in China has increased and the size of the world was ranked first in the world in 2015.At the same time,the P2P lending service industry in China is also in a high risk period after 2015 with the failure and running of the problem platform and has brought irreparable losses to many borrowers and investors.Despite the sharp decline in the number of platforms,this pattern has not disappeared.It is because of the concentration of risk that the P2P network lending industry has undergone a major cleaning.Most of the survivals are the platform of standard management and strong strength.These platforms will continue to develop in the future and even gain more benefits.Therefore,it is of great significance to continue to study the P2P pattern.The online communication between the two sides also aggravates the problem of information asymmetry in this model.Different financiers' repayment ability and credit condition are uneven,so the risk of default is also more serious for investors.Therefore,the focus of investors is how to choose a trustworthy financier to ensure the successful recovery of its investment principal and gain the income of investment.P2P platform is more concerned about how to reduce the bad debt rate and overdue rate to ensure the normal operation of the platform.P2P platform is more concerned about how to reduce the bad debt rate and overdue rate to ensure the normal operation of the platform.Therefore,the investment preference of the P2P platform investor,that is,the influencing factors of the success rate of the borrower's loan,has no negligible research value.To this end,this paper selected the representative P2P platform " renrendai " from October 2010 to January 2015 real loan data and using Probit model and OLS regression method to study the factors affecting the success rate of lending in the P2P Market.As the two important indicators,experience and education background play irreplaceable roles for the borrower's loan application success.This paper carries on an empirical study of the relationship among the borrower's working hours,the degree of their academic qualifications and the success rate of the loan.The regression results of Probit model and Logit model show that the longer the borrower's working time is,the higher the success rate of the loan is,and so is the education background.However,possessing two kinds of characteristics will weaken the positive effect on the success rate of the loan through analysis of interaction terms.The result gives some suggestions for P2P platforms and advocate credit evaluation of the borrower with multiple dimensions.This paper has condensed the problems to be solved in the development of China's P2P lending model and taken the heterogeneity of the financier as the breakthrough point.The two indicators of educational background and experience are selected as the breakthrough point of the heterogeneity of the financier.At the same time,the superposition effect of the two on the success rate of borrowing and lending is also explored.This article looks forward to attracting more scholars to dig out the characteristics of the P2P lending model and the service tenet of the P2P platform in the hope of making P2P small loans better to help college students and borrowers who really have a strong ability to work.