Abstract
Based on the Financial Services Authority (OJK), the number of online loan users increases every year. This is due to the increasingly sophisticated technology in Indonesia. Based on data from OJK, the volume of online loan use that started in 2016 has far exceeded the volume of credit card usage in Indonesia. More people are starting to use online loans because the transaction requirements are easy and fast. Productive ages, such as students, are the largest numbers of users since the existence of online loans. Despite of the increase of online loan users, there are still many cases of payment failure on online loans in Indonesia. Online loan payment failure rate increased by 8.27 percent from June 2020. The aim of this research is to find the correlation between the financial knowledge and financial behavior regarding online loans among college students in Indonesia. The population of this research is 1,491,237 college students from DKI Jakarta and West Java. The sample is 400 students. The results of the descriptive analysis of the financial satisfaction variable have an average percentage score of 82.55% and the results of the descriptive analysis of the financial ability variable have an average percentage score of 68.76%, which both are included in the good category. The results of the classical and regression analysis show that financial knowledge has been shown to significantly influence online loan use behavior.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call