OTAKE Toshitsugu    Department   Ritsumeikan Asia Pacific University  College of International Management    Position   Professor
Language	English
Publication Date	2021/12
Type	Research paper
Peer Review	Peer reviewed
Title	A Comparison of Customers` Profile and Default Probabilities of Consolidated and Non-consolidated Loans in the Peer-to-peer Lending Market
Contribution Type	Corresponding
Journal	Bank Parikrama, A Journal of Banking and Finance
Journal Type	Another Country
Publisher	BANGLADESH INSTITUTE OF BANK MANAGEMENT
Volume, Issue, Page	XLVI(1),pp.5-30
Total page number	26
Author and coauthor	Muhammad Rofiqul Islam & Toshitsugu Otake
Details	The growth of the Online Peer-to-peer (P2P) lending market is induced by its ability to offer lower interest rates for the borrowers than that of the traditional lending market which encourages them to avail credit from the P2P market to pay off their existing debt. However, the interest charged on low-credit grade borrowers fails to compensate for the risk level of the borrowers. This paper analyzes the loan data of the low-credit grade borrowers to compare the loan attributes and the default probabilities of the debt consolidated and the non-consolidated loans. Our study shows that the debt-consolidated borrowers are getting funded with worse credit grade and with a higher debt burden as compared with the non-consolidated borrowers. The low-credit grade consolidated borrowers are more likely to default than the low-grade non consolidated borrowers and for both the groups of borrowers the borrowers’ credit history fails to predict their default probabilities.