Managers of microfinance institutions (MFIs) typically lack the information required to optimize loan contract terms and marketing strategies. We outline a replicable randomized-control methodology that addresses MFI contracting and marketing strategies directly, and we present evidence from the first implementation of this methodology. We estimate consumer loan demand sensitivities with respec...

a r t i c l e i n f o In setting up, and bidding in online auctions, people face difficult strategic decisions. In this study, a Borrower Decision Aid is introduced, which will help formalize the decision making process of the sellers, or borrowers in this case, in one particular P2P loan auction site, Prosper.com. The vast amount of real-life bidding data available in this online auction enabl...

Using data from Lending Club and Prosper, the two largest peer-to-peer lenders in the U.S., we provide evidence of the winner’s curse in the online personal lending market. Borrowers who were rejected by a competitor are twice as likely to default as borrowers who were not rejected, conditional on receiving the same contract. Borrowers are also more likely to default when offered higher interes...

A Meta Classifier in this approach is used for the approval of Loan application, as a Data mining classification tool to support Business operations in a very secure way. The goal of designing a Meta classifier system is to achieve the best possible classification performance for the task of effective decision making. This Meta classifier is the combination of Naïve Bayesian classifier, K-Neare...

one of the main challenges facing the agriculture bank of iran regarding lending loans is the high probability of default by farmers. several factors could be involved in this issue and should be considered in order to control and reduce the risk in the failure of repayment. this study aimed to examine the factors affecting the repayment performance of agricultural loans in the city of maragheh...

Mortgagors face a trade off between paying more points and a lower interest rate. The theoretical prediction is that borrowers with a higher probability of prepayment would opt for a loan with fewer points and higher interest rate. Another theoretical prediction is that once incurred, points become sunk costs, hence should not affect borrowers’ refinancing decisions in the future. Utilizing ind...