We examine the informational role of moral norms in online lending markets. Using data from one of the largest peer-to-peer lending platforms in China, we show that borrowers from regions with stronger moral norms measured by the strength of local Confucian culture are more likely to be funded and receive more campaign proceeds relative to loan size. Moreover, borrower moral norms result in favorable lending outcomes through the channels of enhancing the creditworthiness and predictability of borrower behaviors. Ex post analysis suggests that borrowers from regions with stronger moral norms have lower loan default probabilities, and their lenders enjoy higher returns. Taken together, our findings reveal the unique role of moral norms in enhancing transaction efficiency by mitigating the adverse selection and moral hazard problems in peer-to-peer lending.