Beata Gavurova,

Technical University of Košice,

Košice, Slovak Republic,

E-mail: beata.gavurova@tuke.sk

DETERMINANTS OF SUCCESSFUL LOAN APPLICATION AT PEER-TO-PEER LENDING MARKET

Martin Dujcak,

Technical University of Košice,

Košice, Slovak Republic,

E-mail: martin.dujcak@tuke.sk

Viliam Kovac,

Technical University of Košice,

Košice, Slovak Republic,

E-mail: viliam.kovac@tuke.sk

Anna Kotásková,

Pan-European University in Bratislava,

Bratislava, Slovak Republic,

E-mail: anna.kotaskova@gmail.com

Abstract. Peer-to-peer lending, as an alternative to classic bank loans, has become popular all over the world. On the basis of the conceptual characteristics, it can be expected that loans should be more advantageous from the view of costs. But as the studies describe, there are significant differences due to the factors, which can be affected by borrowers with the aim to get funded. We have examined the role of the particular factors, as part of provided data by borrowers for the decision-making process by investors in the dataset from the peer-to-peer lending website Bondora, managed by the Estonian company Isepankur. With the method of the multinomial logistic regression model, we described the importance of borrowers’ decisions and their effects on funding results. The debt to income rate is the most significant variable and the highest negative impact is reached by the home ownership type variable. There are 28 factors with a non-negative impact and 20 factors have a negative influence. Comparison of these findings to other studies enable us to describe the impacts of the social identity data and information about the loan for investors, within the peer-to-peer lending market environment.

Received: October, 2017

1st Revision: December, 2017

Accepted: February, 2018

DOI: 10.14254/2071-789X.2018/11-1/6

JEL Classification: H81, L81

Keywords: peer-to-peer lending; loan application; financial marketplace; electronic commerce