Travel loan example: The Singh family go on a trip
The Singh family decide they want to escape the cold Canadian winter and take a vacation. With six family members in total, their all-inclusive vacation package to Sayulita, Mexico will total $1,500.00 each – for a total of $9,000.00! With savings of $7,000.00, the family will need to borrow $2,000.00. They know getting a vacation loan isn’t ideal, but the family are expecting to sell their extra car soon, which can pay back the loan. With a good credit rating of 700, the family are approved for a personal loan from an online provider.
Cost of vacation | $9,000.00 |
Loan type | Personal loan |
Loan amount | $2,000.00 |
Interest rate | 7.00% |
Loan term | 6 months |
Additional fees | Origination fee of 3.00% ($60.00) |
Monthly payment | $340.17 |
Total loan cost | $2,101.03 |
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.