Impact of behavioral factors on the investor's intention in peer-to-peer lending

PurposePeer-to-peer lending has emerged as a promising alternative investment avenue globally. This study explores the variables influencing investors' intention in peer-to-peer lending. Studying these factors is crucial for inspiring investor motivation, which leads to the growth of peer-to-peer lending platforms in India.Design/methodology/approachThe research utilizes information gathered from 293 investors of the Rang de platform through a questionnaire. It employs ordinal logistic regression to assess how demographic characteristics, investor experience, social projects and investment factors influence the study's outcomes.FindingsThe research indicates that the education qualification and income level of the investors are significant demographic variables in their investment decisions. Moreover, social projects, the experience of the investors and investment factors affect their intent to invest more in peer-to-peer lending projects.Research limitations/implicationsIt helps stakeholders and borrowers of crowdfunding platforms think about these aspects when creating plans to bring in and keep investors. This approach also enhances the openness and dependability of lending processes.Originality/valueThis research sheds light on Indian investors' behavior toward peer-to-peer lending platforms and includes new investment factors like project categories and impact partners that other researchers did not identify.