Prediction of the Borrowers' Payback to the Loan with Lending Club Data

摘要

The lending industry has been growing at a rapid speed, in particular, the peer-to-peer (P2P) lending segment of the loan market. This growth can be attributed to technology and the nature of the business, which makes the lending process to be cheaper and convenient than traditional lending institutions [4]. Despite the ever-growing popularity and utilization of these P2P lending platforms, little is understood about the metrics that lenders use to determine the creditworthiness of a borrower using these online services. This paper aims to construct a model to predict whether the borrower will pay back the loan.