The effect of loan granted factor on peer-to-peer lending (funded loan) in Indonesia

Fajri Kurniawan, Chandra Wijaya

Research output: Contribution to journalArticlepeer-review

Abstract

This study aims to determine whether the loan granted factor can affect peer-to-peer lending in Indonesia. The factors investigated in this research are the loan amount, loan period, interest rate, gender, and loan history using the data from registered and licensed peer-to-peer lending by the Financial Services Authority or Otoritas Jasa Keuangan (OJK) on November 2019. By examining 1,006 loans, the analytical method used is binary logistic regression with a significance level of alpha 0.05. The results of this research are loan amount, loan period, and loan history have the strongest impact on borrowers’ loan funding decision, suggesting that these loan characteristics can signal information that standard measures are used for loan funding. However, interest rate and gender have no significant effect on loan granted. Overall, loan funding decisions are based on proper and relevant signals given by loan characteristics.

Original languageEnglish
Pages (from-to)165-174
Number of pages10
JournalInvestment Management and Financial Innovations
Volume17
Issue number4
DOIs
Publication statusPublished - 1 Dec 2020

Keywords

  • Crowdfunding
  • Investment decision
  • Loan characteristic
  • Logistic regression
  • Non-bank institution

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