In view of the growing importance of P2P lending in China, we investigate the role of the level of education of a borrower on the demand for funding. We collect and analyze data for more than 10,000 transactions obtained from Renrendai.com, a popular P2P company operating in China. Our analysis indicates that individuals with higher levels of education demand smaller loans for any given interest rate and lower interest rates for any given loan amount, controlling for a variety of factors. This finding applies to individuals demanding both personal and business loans. The same result holds, moreover, when an individual’s credit information is available to a P2P company online. Several robustness tests confirm our basic empirical findings.