ACMJ Article

Abstract

This study examines the influence of loan advertisements on consumer sign-up and borrowing behaviour among users of digital loan applications in Nigeria. Specifically, it investigates the extent to which exposure to loan advertisements drives app sign-up, identifies persuasive advertising techniques that influence loan uptake, and assesses how perceptions of credibility and trust shape borrowing behaviour. A survey research design was adopted, targeting an estimated population of over 3 million Nigerian digital loan users. A sample size of 400 respondents was selected using purposive sampling. Data were collected through a structured questionnaire administered online via Google Forms, with a pretest conducted among 30 respondents to ensure clarity. Reliability analysis yielded Cronbach’s alpha values of 0.82, 0.85, and 0.80, indicating strong internal consistency. Data were analyzed using descriptive statistics. Findings reveal that exposure to loan advertisements significantly influences consumer decisions to sign up for loan applications. Persuasive techniques such as instant approval claims, urgency messaging, and incentives were found to be most effective in converting sign-ups into actual borrowing. Although perceptions of credibility and trust were moderate, they still played a significant role in influencing borrowing behaviour. The study concludes that loan advertisements are effective tools for consumer acquisition but require greater transparency to enhance trust. It recommends responsible advertising practices, ethical persuasive strategies, and improved credibility measures to promote informed and sustainable borrowing behaviour.

INFLUENCE OF LOAN ADVERTISEMENTS ON CONSUMER SIGN-UP AND BORROWING BEHAVIOUR AMONG LOAN APPLICATION USERS, 2026, Vol. 3, No. 1, pp. 62-71. PDF