THEORY OF PLANNED BEHAVIOR: FINANCIAL FACTORS INFLUENCING ONLINE LOAN DECISIONS

The rapid development of financial technology has led to the emergence of online loan services that are now widely used by generation Z and millennials in Indonesia. Easy access, fast processing, and no collateral are the main attractions, but there is a high financial risk behind it. This study aims to determine the effect of financial literacy, lifestyle, and risk of default on the decision to use online loans among generation Z and millennials in Kuningan District. The research method used is quantitative with a survey approach through distributing questionnaires to 260 respondents. The data analysis technique uses multiple linear regression to test the relationship between variables. The results showed that simultaneously financial literacy, lifestyle, and risk of default had a significant effect on the decision to use online loans. Partially, financial literacy divided by three dimensions (Financial Knowledge, Financial Behavior, Financial Attitude) has a significant positive effect, while Lifestyle and Risk of Default have a negative but significant effect on the decision. This study confirms the importance of increasing financial literacy among the younger generation as well as the need for lifestyle control so as not to trigger excessive use of online loans. In addition, awareness of the risk of default needs to be instilled so that generation Z and millennials are wiser in making financial decisions in the digital era.