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Analysis of The Characteristics of Different Peer-To-Peer Risky Loans
This study analyzes data from Lending Club 2011 January to 2016 January. We use survival analysis and proportional hazards model to find what loan characteristics will have lower default rate in high-risk group and low risk group. The grouping way is through the lending Club credit score. Our study provides a way to analyze loan characteristics to reduce information asymmetry and default rate. To earn higher interest and take the principal back have always been the biggest issue in the financial world. Our research gives the advices through survival analysis with empirical data. The results show the repayment characteristics of the high-risk group and the low-risk group is similar. Except for the following four characteristics, ‘mortgage’, ‘education’, ‘home improvement’, and ‘medical’ are opposite.