Abstract
The objective of this study was to examined the effect of digital unsecured loans and DTI ratio on changes in risk-taking behavior of the household sectros. Increasing of P2P lending is clearly unstoppable in Indonesia. Digital unsecured loans success to simplify credit process, because online-based credit aplication. However, these simply process are followed by high-interest rate. Many people apply for credit without considering risk. The convenience of digital unsecured loans making people forget about high annual percentage rate. Finally, occur increase potential bad loans in the household sectros. Collection of data was carried out through experiments 2 x 2 factorial design. The results shows that digital unsecured loans increases risk-taking behavior of household sectors. DTI ratio also can be used as an internal control of household sectors to prevent increased risk-taking behavior
Highlights
This study prove that DTI ratio can mitigate individual risk taking behavior in condition there is digital unsecured loans
This study proposed three hypothesis and the results indicated there was significat difference about mean scores of subject intention to apply digital unsecured loans between manipulation and control group
The purpose of this study was to conduct laboratory experiment to examine the effect of digital unsecured loans and DTI ratio toward risk-taking behavior
Summary
This study prove negative impact of digital unsecured loans on risk-taking behavior. This study prove that DTI ratio can mitigate individual risk taking behavior in condition there is digital unsecured loans. This study proposed three hypothesis and the results indicated there was significat difference (for all hypothesis) about mean scores of subject intention to apply digital unsecured loans between manipulation and control group. Previous studies on non-performing loans (NPL) showed that NPL has negative effect on economic growth (see Erdoğdu, 2017; Balgova et al, 2018).
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