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What does not kill us makes us stronger: the story of repetitive consumer loan applications.

Caglayan, Mustafa; Talavera, Oleksandr; Xiong, Lin; Zhang, Jing


Mustafa Caglayan

Oleksandr Talavera

Jing Zhang


We investigate borrower and lender behaviours when the borrower has experienced a sequence of failed loan applications. Our analysis is based on half a million observations from an established peer-to-peer (P2P) loan platform in China, from 2010 to 2018. We find that borrowers who have better credit scores and who accept to pay higher interest rates are likely to reapply for funds after experiencing an earlier failed attempt. However, women and applicants with more education are discouraged from re-applying compared to their male or less-educated counterparts, respectively. On the funding supply side, lenders strive to fund safe borrowers who have high credit ratings and high income, though not those who offer a high interest rate.


CAGLAYAN, M., TALAVERA, O., XIONG, L. and ZHANG, J. 2022. What does not kill us makes us stronger: the story of repetitive consumer loan applications. European journal of finance [online], 28(1), pages 46-65. Available from:

Journal Article Type Article
Acceptance Date Jul 2, 2020
Online Publication Date Jul 20, 2020
Publication Date Feb 28, 2022
Deposit Date Jul 23, 2020
Publicly Available Date Jan 21, 2022
Journal European journal of finance
Print ISSN 1351-847X
Electronic ISSN 1466-4364
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 28
Issue 1
Pages 46-65
Keywords Peer-to-peer lending; Loans and borrowing; Financing; Borrowing practices; Loan applications; Fintech; China
Public URL


CAGLAYAN 2022 What does not kill us (AAM) (575 Kb)

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Copyright Statement
This is an Accepted Manuscript of an article published by Taylor & Francis in the European Journal of Finance on 20.07.2020, available online:

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