The content used for lending purposes needs to perform three essential functions which include explaining terms clearly and protecting customers from deceptive information and converting their trust into loan applications.
The following guidelines show you how to create lending content which protects borrowers and follows all necessary regulations.
If you promote lending products, lending copywriting helps you communicate risk and responsibility.
Start with transparency
The first sentence should never contain phrases which include "Get cash now!" or "Approved in minutes!"
Your content should begin with straightforward information that states:
"Review different loan choices exist with detailed terms and multiple payment options."
Your content should establish trust through honest communication before you request any action from readers.
Explain costs honestly
The APR (Annual Percentage Rate) and total repayment amount and all fees must be displayed to borrowers.
All fees must appear prominently in the text instead of being concealed within lengthy terms or small print sections.
The loan details show that borrowers need to pay €250 monthly for 24 months which results in a total repayment of €6,000 at an APR of 12.5%.
Use risk language clearly
Every CTA requires a disclaimer which serves as a legal notice that protects you and provides essential information to borrowers.
The process of borrowing money requires borrowers to pay additional costs. Borrowers must verify their ability to make loan payments before submitting their application.
Avoid pressure tactics
The following statements should never appear in your content because they damage trust and violate regulatory standards.
- "Limited time offer"
- "Guaranteed approval"
- "Everyone qualifies"
The following statements violate trust and break regulatory standards because they create false impressions about loan availability and time-sensitive offers.
Focus on education
The content should explain three essential points to borrowers about APR definitions and payment structures and payment consequences for late payments.
Educational content helps establish your authority while building trust with your audience.
Make compliance visible
The required disclaimers must appear in a straightforward manner throughout the content.
The content includes two essential statements which state that borrowers must be at least 18 years old and undergo credit checks and affordability assessments before receiving terms.
Test for clarity
Your content needs external review from a finance professional before you can release it to the public.
Your content remains clear when readers who are not finance experts can understand its meaning.
Lending product types
Different lending products require tailored copywriting approaches to address unique borrower concerns and regulatory requirements.
Personal loans
Personal loan copy must balance accessibility with responsible borrowing messaging. Emphasize flexibility while clearly stating repayment obligations.
Effective personal loan messaging:
- Clear purpose: "Borrow for any purpose - home improvements, debt consolidation, or major purchases"
- Transparent terms: "See your interest rate and monthly payment before you apply"
- Responsible borrowing: "Only borrow what you need and can afford to repay"
Example headline: "Personal loans from $1,000 to $50,000. Check your rate in minutes, no impact on your credit score."
Short-term loans
Short-term loan copy requires extra care due to higher interest rates and regulatory scrutiny. Emphasize emergency use and clear repayment terms.
Effective short-term loan messaging:
- Emergency focus: "For unexpected expenses when you need cash quickly"
- Clear costs: "Borrow $500, repay $575 in 30 days. See all fees upfront."
- Responsible use: "Designed for short-term needs, not long-term financial solutions"
Example headline: "Short-term loans for unexpected expenses. Clear terms, transparent fees, responsible borrowing."
Credit cards
Credit card copy should emphasize responsible use and clear fee structures. Avoid language that encourages debt accumulation.
Effective credit card messaging:
- Benefits focus: "Earn rewards on everyday purchases"
- Clear terms: "0% APR for 12 months, then 18.99% variable APR"
- Responsible use: "Pay your balance in full each month to avoid interest charges"
Example headline: "Credit card with rewards and no annual fee. See if you're approved in minutes."
Business loans
Business loan copy must address both business needs and personal guarantees. Be transparent about requirements and repayment terms.
Effective business loan messaging:
- Business focus: "Funding for your business growth, equipment, or working capital"
- Clear requirements: "Minimum 1 year in business, $50K annual revenue"
- Transparent terms: "See your interest rate and repayment schedule before you apply"
Example headline: "Business loans from $10,000 to $500,000. Fast approval, flexible terms, competitive rates."
Regulatory compliance by region
Lending copy must comply with regional regulations that vary significantly.
United States (TILA)
TILA requires:
- Clear APR disclosure: Must be displayed prominently
- Total repayment amount: Show total cost of borrowing
- Payment schedule: Clear breakdown of payments
- Right to rescind: Information about cancellation rights (where applicable)
Example disclaimer: "APR ranges from 5.99% to 29.99% based on creditworthiness. Late payment fees apply. See terms for details."
European Union (CCD)
EU regulations require:
- Standardized APR calculation: Must use EU formula
- Pre-contractual information: Detailed terms before application
- Right of withdrawal: 14-day cooling-off period information
- Language requirements: Must be in local language
Example disclaimer: "Representative APR 12.5% (fixed). Total amount payable €6,000. Subject to status and affordability checks."
United Kingdom (FCA)
UK lending copy must include:
- Representative APR: Must show typical APR, not best-case
- Total amount payable: Clear total cost
- Affordability checks: Information about assessment process
- Responsible lending: Language about borrowing responsibly
Example disclaimer: "Representative 12.5% APR (fixed). Total amount payable £5,000. Subject to status, affordability, and credit checks."
Email sequences
Effective email sequences guide borrowers through the application process while building trust and ensuring compliance.
Pre-application emails
1. Educational email: Explain loan types and when to use them
2. Comparison email: Show different loan options and their costs
3. Application email: Guide borrowers through the application process
4. Approval email: Confirm approval and explain next steps
5. Acceptance email: Finalize terms and set repayment expectations
Example email subject: "Your loan application: Here's what happens next"
Post-approval emails
1. Welcome email: Confirm loan acceptance and set expectations
2. Payment reminder: First payment due date and amount
3. Account access: How to manage loan online
4. Early repayment: Information about paying off early
5. Support resources: Where to get help if needed
Example email subject: "Your loan is active. Here's your first payment date."
Voice of customer research
Understanding borrower language and concerns helps you write copy that resonates while staying compliant.
Where to gather insights
- Review application forms for common questions
- Analyze support tickets for borrower concerns
- Survey borrowers about what drew them to your product
- Monitor social media discussions about loans and credit
- Review competitor messaging to identify effective patterns
- Conduct interviews with borrowers about their experience
Translating insights into copy
When borrowers mention "need money fast" or "worried about credit score," address these concerns directly. If they value "transparency" or "no hidden fees," emphasize those themes.
Example: If research shows borrowers fear hidden fees, lead with: "No hidden fees, ever. See exactly what you'll pay before you apply."
A/B testing copy
Test different messaging approaches to identify what builds trust and drives applications while staying compliant.
What to test
- Headlines: Benefit-focused vs. transparency-focused ("Get cash fast" vs. "See your rate in minutes")
- CTAs: Action-oriented vs. educational ("Apply now" vs. "Check your eligibility")
- Social proof: Numbers vs. testimonials ("500K+ borrowers" vs. "See what borrowers say")
- Risk disclaimers: Prominent vs. subtle placement
- Fee transparency: Detailed vs. simplified displays
How to measure success
Track metrics beyond conversions:
- Application completion rate: Shows clarity of process
- Approval rate: May indicate copy attracts qualified borrowers
- Support ticket volume: High volume suggests unclear messaging
- Complaint rate: May indicate copy overpromised
- Repayment rate: Shows borrowers understood terms
Common copywriting mistakes
False urgency
Avoid language that suggests time-sensitive offers: "Limited time," "Act now," "Only today."
Instead, use clear, factual language: "Apply anytime," "No expiration," "Available when you need it."
Guaranteed approval
Never promise approval: "Guaranteed approval," "Everyone qualifies," "No credit check."
Instead, use realistic language: "Subject to credit check," "Approval not guaranteed," "Based on creditworthiness."
Hiding fees
Never bury fee information. Display all costs prominently.
Bad: "Low rates available" (fees hidden)
Good: "APR from 5.99% to 29.99%. Origination fee: 1-5% of loan amount. See all fees upfront."
Pressure tactics
Avoid language that pressures borrowers: "Don't miss out," "Last chance," "Limited availability."
Instead, use supportive language: "Take your time to review terms," "No obligation to accept," "Compare your options."
