P2P LENDING INTEREST RATES SENSITIVITY TO SOCIOECONOMIC FACTORS
LOMONOSOV MOSCOW STATE UNIVERSITY, FACULTY OF ECONOMICS
Abstract. The present paper analyses how sensitive P2P credit interest rates are to the socioeconomic data declared by P2P credit users. The reasons why credit users are choosing P2P platforms as an alternative to commercial banks include: lower interest rate, shorter loan processing times, fewer document requirements and the online nature of the process. Of these, the most winning feature for the borrower is the lower interest rate. According to the study, in 94% of cases, a one-step adjustment in a user’s credit rating triggers an interest rate change of 0.654%, while the length of their credit history and the purpose of their loan have no impact on the chosen interest rate.