Research published by two University of Queensland pupils has revealed that peer-to-peer loan providers are more inclined to accept reduced monetary returns they are funding is socially and environmentally responsible if they know the project.
Jason Lejcak (Bachelor of Economics (Honours)) and Benjamin Wiltshire (Bachelor of Commerce (Honours) and Bachelor of Science) co-authored the research as an element of a research task with UQ’s Australian Institute for Business and Economics (AIBE), that was made feasible as a result of a scholarship given by two UQ alumni.
Included in the research, the pair examined data from the popular Australian peer-to-peer lending platform and discovered that small green loans – averaging around $8000 and used mostly for renewable power tasks such as for example installing rooftop solar – had a 2.1 % lower rate of interest compared to a comparable loan useful for other purposes.
Mr Lejcak stated while green loans comprised a little piece associated with the lending that is peer-to-peer, these were a fast-growing group of loan needs.
“Peer-to-peer economic financing platforms provide people and smaller loan providers with all the chance to partake in social impact investing, which can be typically away from range of banking institutions and larger loan providers, ” he said.
“once you think about the economy that is sharing many people think about Uber (transportation) and AirBnB (accommodation), but peer-to-peer financing is an extremely exciting and competitive area that is setting up brand brand brand new and transforming current markets. […]