Jamaicans have used loans from commercial banks and other financial institutions; micro and otherwise, to achieve many of their life goals. From higher education to purchasing motor vehicles or homes, the local financial sector has assisted in the fulfillment of the dreams of many persons who would not otherwise have had the financial capacity to realize the dreams themselves.
While not occurring on a wide scale, there are some financial institutions, in particular micro loan institutions, that have taken their loan offerings a step further by seeking to fulfill what some would say are less important needs among its consumer base.
“Parties such as Dream Weekend and ATI can cost a patron upwards of $30,000.00 and sometimes these funds are not readily available.”
The idea of recreational loans and, in particular, party loans, was introduced just about two years ago. This innovation can be easily credited to the Managing Director of Sprint Financial Services, Christopher Barrett, who at the time received significant media attention as the idea was something completely new to the local market.
“The ‘party loan product’,” he notes, “appeals to the mostly younger demographic, who are regulars at ‘all-inclusive parties’ such as the annual ATI and Dream Weekend parties.” Although the party loans are seasonal, they continue to gain traction with a significant increase in the take up since the inception of the product.
“The idea of the ‘party loans’ was introduced because no other financial institution catered to that sector of the market at that time,” he disclosed. According to Barrett, the company initially offered mini-vacation loans and it was out of this idea that the inspiration for the party loans was born.
“Parties such as Dream Weekend and ATI can cost a patron upwards of $30,000.00 and sometimes these funds are not readily available,” Mr. Barrett shared.
Other recreational loans too have done well for the company. “Vacation loans, for instance, are requested all year round and these account for 15% of our loan portfolio,” he asserted.
Party goers and takers on the recreational loans will find the products useful however some financial professionals are totally against the practice. Financial advisor at Sagicor Investments, Stayciann Smith, states that the practice is not a good one. “It is best for party goers to either live within their means or plan properly so that they have the savings to coincide with the events they want to attend,” she said. Smith noted that the money spent to repay these loans could be put towards future financial plans such as higher education, retirement or home ownership.
Although Barrett declined to disclose the interest rates on these loans, a quick online search indicated that the rates usually range from 1.5-2% per week… this may sound attractive, however the calculated interest on a loan of say $50,000 repaid in three months can attract a significant interest payment.
Undoubtedly though, one main attraction must be that no guarantors are necessary as long as the borrower’s employer offers salary deductions. Borrowers requesting loans for the parties also get their funds processed within a short time and need basic information to have it processed, including: proof of employment for more than a year, identification, and proof of address, among a few other elements.
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Jamaicans have used loans from commercial banks and other financial institutions; micro and otherwise, to achieve many of their life goals. From higher education to purchasing motor vehicles or homes, the local financial sector has assisted in the fulfillment of the dreams of many persons who would not otherwise have had the financial capacity to realize the dreams themselves.
While not occurring on a wide scale, there are some financial institutions, in particular micro loan institutions, that have taken their loan offerings a step further by seeking to fulfill what some would say are less important needs among its consumer base.
“Parties such as Dream Weekend and ATI can cost a patron upwards of $30,000.00 and sometimes these funds are not readily available.”
The idea of recreational loans and, in particular, party loans, was introduced just about two years ago. This innovation can be easily credited to the Managing Director of Sprint Financial Services, Christopher Barrett, who at the time received significant media attention as the idea was something completely new to the local market.
“The ‘party loan product’,” he notes, “appeals to the mostly younger demographic, who are regulars at ‘all-inclusive parties’ such as the annual ATI and Dream Weekend parties.” Although the party loans are seasonal, they continue to gain traction with a significant increase in the take up since the inception of the product.
“The idea of the ‘party loans’ was introduced because no other financial institution catered to that sector of the market at that time,” he disclosed. According to Barrett, the company initially offered mini-vacation loans and it was out of this idea that the inspiration for the party loans was born.
“Parties such as Dream Weekend and ATI can cost a patron upwards of $30,000.00 and sometimes these funds are not readily available,” Mr. Barrett shared.
Other recreational loans too have done well for the company. “Vacation loans, for instance, are requested all year round and these account for 15% of our loan portfolio,” he asserted.
Party goers and takers on the recreational loans will find the products useful however some financial professionals are totally against the practice. Financial advisor at Sagicor Investments, Stayciann Smith, states that the practice is not a good one. “It is best for party goers to either live within their means or plan properly so that they have the savings to coincide with the events they want to attend,” she said. Smith noted that the money spent to repay these loans could be put towards future financial plans such as higher education, retirement or home ownership.
Although Barrett declined to disclose the interest rates on these loans, a quick online search indicated that the rates usually range from 1.5-2% per week… this may sound attractive, however the calculated interest on a loan of say $50,000 repaid in three months can attract a significant interest payment.
Undoubtedly though, one main attraction must be that no guarantors are necessary as long as the borrower’s employer offers salary deductions. Borrowers requesting loans for the parties also get their funds processed within a short time and need basic information to have it processed, including: proof of employment for more than a year, identification, and proof of address, among a few other elements.
Share this post: