Factors Influencing Intention to Purchase a Bank Loan: The Case of North Cyprus

In the field of buying behavior, the effect of attitudes, self-confidence, perceived trust and past experience has long been recognized. However, none of these factors have been examined in the field of purchasing a bank loan. Thus, until now it has not been established whether: (i) attitudes towards bank loan have an effect on intention to get a bank loan from banks; (ii) self-confidence has effect of intention to get a bank loan; (iii) perceived trust toward the banking system has an effect on intentions to get a bank loan and finally; (iv) past-experience in getting a bank loan has an effect on intention to purchase a credit from banks. This study represents the first attempt to address these gaps in the literature by the effect of aforementioned variables on intentions to get a bank loan. To initially conceptualize the relationship between all these factors (attitude, self-confidence, perceived trust and past experience) and their possible impact on intention(s) to purchase a loan, a comprehensive literature review was engaged. Following the literature review, a number of hypotheses were developed to examine the possible effects of these factors on intention(s) to take out a bank loan. These proposed hypotheses were investigated using regression analysis with a total sample of 280 respondents. The finding indicated that all the factors (attitude, self-confidence, perceived trust and past experience) influence intention(s) to apply for a bank loan among Turkish Cypriot consumers. Moreover, it has been found that the relationship between these factors and intention to purchase a loan is positive: i) When a Turkish Cypriot’s attitude toward loaning is positive their intention to taking a bank loan also increases; (ii) Turkish Cypriot with higher level of self-confidence are more likely to apply for a bank loan; (iii) Turkish Cypriots with positive perceived trust toward banking system in TRNC are more likely to apply for a bank loan; (iv) Turkish Cypriot with positive past-experience about bank loans are more likely to purchase a credit from TRNC banks. Keywords: Buying Behavior, Intention(s) to take out a Bank Loan, Attitudes, Self-Confidence, Perceived Trust, and Past-Experience.