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Peer-to-peer lending for individual and MSME finance: Evidence from an original survey in China

Author

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  • Liu, Yajing
  • Fujiwara, Kenya
  • Jinushi, Toshiki

Abstract

This study analyzes peer-to-peer (P2P) lending, a new financing tool for micro, small, and medium enterprises (MSMEs) and individuals, in terms of its relationship with existing financing tools. We conducted a survey of P2P borrowers in China and analyzed the factors that influenced their preference for P2P loans. A key finding was that both business and individual borrowers having difficulties with traditional financing methods—such as the young and women, persons without collateral, and newly established firms—prefer P2P lending. Furthermore, individual borrowers are drawn by the preferential terms in the P2P loan contracts, while business borrowers are not.

Suggested Citation

  • Liu, Yajing & Fujiwara, Kenya & Jinushi, Toshiki, 2024. "Peer-to-peer lending for individual and MSME finance: Evidence from an original survey in China," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 38-51.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pa:p:38-51
    DOI: 10.1016/j.iref.2024.02.038
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    References listed on IDEAS

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    More about this item

    Keywords

    Peer-to-peer lending; Individual and MSME finance; Borrowers; Online platform; China;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G40 - Financial Economics - - Behavioral Finance - - - General

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