Holistic Credit Rating System for Online Microlending Platforms with Blockchain Technology

  • Yash MahajanEmail author
  • Shobhit Srivastava
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 969)


The inexorable rise of the Internet has given traditional microlending facilities a new online platform where people from any part of the world can lend their money to those in need of it. With the risk of defaults being tremendously high in comparison to traditional financing, there is an utmost need for the platform to be transparent and trustworthy. Keeping this in mind, we propose a model which is based on the blockchain technology and uses a holistic rating system to rate both the borrower and lender instead of the generally used rating of the Microfinance Institutions (MFIs) or Field Partners (FP), which act as intermediary and have a tie-up with the online peer-to-peer platforms nowadays. This proposed model provides security along with openness in the system and can be integrated into the existing systems for a more efficient system.


Microlending Peer-to-peer Naive bayes classifier Blockchain Hyperledger fabric 


  1. 1.
    Paruthi, F.G., Frias-Martinez, S.E., Frias-Martinez, T.V.: Peer-to-Peer microlending platforms: characterization of online traits. In: 2016 IEEE International Conference on Big Data (2016)Google Scholar
  2. 2.
    Riggins, F.J., Weber, D.M.: Information asymmetries and identification bias in P2P social microlending. In: 2015 48th Hawaii International Conference on System Sciences (2015)Google Scholar
  3. 3.
    Desai, R.M., Kharas, H.: Do philanthropic citizens behave like governments? In: Internet-Based Platforms and the Diffusion of International Private Aid (2009)Google Scholar
  4. 4.
    Krishnaveni, K.S., Pai, R.R., Iyer, V.: Faculty rating system based on student feedbacks using sentimental analysis. In: 2017 International Conference on Advances in Computing, Communications and Informatics (2017)Google Scholar
  5. 5.
    Hartarska, V., Nadolnyak, D.: Does rating help microfinance institutions raise funds? Cross-country evidence. Int. Rev. Econ. Finan. 17(4), 558 (2008)CrossRefGoogle Scholar
  6. 6.
    Bottazzi, L., Da Rin, M., Hellmann, T.F.: The importance of trust for investment: evidence from venture capital. In: Forthcoming, Review of Financial Studies, p. 571 (2016)Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Department of Computer ScienceVITVelloreIndia
  2. 2.Department of Electronics EngineeringGautam Buddha Technical UniversityGreater NoidaIndia

Personalised recommendations