Joint liability loans in online peer-to-peer lending

Yimin Zhou and Xu Wei

Finance Research Letters, 2020, vol. 32, issue C

Abstract: This work examines the performance of joint-liability loans, compared with individual loans, in online P2P lending. We show that, with all else being equal, joint-type loans are less likely to default. However, they don’t get lower interest rates. This result suggests that the loan-type (joint-liability or individual), which has the potential to be a source of “soft information”, is not priced in online lending.

Keywords: Online peer-to-Peer lending; Joint liability loan; Default risk (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:32:y:2020:i:c:s154461231830521x

DOI: 10.1016/j.frl.2018.12.024

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