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Online microfinance in Eastern Europe: Personal versus business loan funding

Publication EMN Working papers

Recent efforts by the European Microfinance Network (EMN) report that between 2012 and 2017 business loans were losing ground to personal loans both in the number (60% to 41%) and the value of disbursed loans (80% to 52%) as well as in terms of active borrowers (61% to 41%) (Bendig et al. 2014; Botti et al. 2016; Diriker et al. 2018). Personal loans are thus quickly catching up with business microloans and verged on €1 billion in 2017. Based on data about Eastern European countries sourced from the online peer-to-peer (P2P) crowdfunding platform Kiva, this paper examines the relation between soft information and prosocial P2P crowdfunding performance, in particular the funding speed, both for personal and for business loans.

This is the abstract from the research paper that has won the 13th European Microfinance Research Award.