Analysis Of The Lending Efficiency Of Renrendai

Under the background of ’Internet+’ strategy, the P2P lending Internet finance plays a positive and important role in China’s finance reform. But P2P Internet lending has a low efficiency generally at present.In the asymmetric information market, borrowers tend to set interest rates on a higher or lower interest rate while investors tend to prefer high interest rate return, these acts are blind and inefficient. Borrowers and investors need an objective standard of reference to determine whether the interest rate setting is reasonable so the borrowers can improve the success rate and save interest loans while investors can avoid risks of high interest temptation, so as to reduce the opportunity cost of low investment rates.This paper is based on the liberalization of interest rates, information asymmetry &adverse selection and trust theories. The empirical data is collected from the history data source of a Chinese P2P lending company ’Renrendai’, the empirical study use the logistics regression and CHAID decision tree models to study the efficiency of lending.The accuracy of Logistics regression model to predict the results of the loan borrowing rates reached 97.8%, forecast accuracy rate reached 86.1%. The accuracy of CHAID decision tree model to predict the results of the loan borrowing rates reached 78.2%, forecast accuracy rate reached 79.1%. At the end of this paper, we give a summary of the factors affecting the efficiency of lending.