Harmoney

Harmoney is a personal loan provider, founded in 2014 and created to transform the borrower experience.

In 2017, Harmoney entered the peer-to-peer (P2P) market in Australia, after finding success as the first company to receive a P2P lending license in New Zealand.

Peer to peer lending connects borrowers with investors, taking banks and traditional financial institutions out of the lending equation.

Harmoney relies on the power of its technology to make lending decisions, basing these decisions on technology, science and data to make better lending decisions more quickly than what is generally accepted.

Harmoney believes this approach takes human error, misinterpretation and unconscious bias out of the decision making process, making that process fairer for borrowers.

The company’s human staff is focused on building better customer experiences.

Harmoney is now Australasia's largest personal loan marketplace. It has facilitated over $1.6 billion in loans to nearly 50,000 customers in Australia and New Zealand.

All of Harmoney’s loan products are unsecured.

Harmoney

Harmoney is a personal loan provider, founded in 2014 and created to transform the borrower experience.

In 2017, Harmoney entered the peer-to-peer (P2P) market in Australia, after finding success as the first company to receive a P2P lending license in New Zealand.

Peer to peer lending connects borrowers with investors, taking banks and traditional financial institutions out of the lending equation.

Harmoney relies on the power of its technology to make lending decisions, basing these decisions on technology, science and data to make better lending decisions more quickly than what is generally accepted.

Harmoney believes this approach takes human error, misinterpretation and unconscious bias out of the decision making process, making that process fairer for borrowers.

The company’s human staff is focused on building better customer experiences.

Harmoney is now Australasia's largest personal loan marketplace. It has facilitated over $1.6 billion in loans to nearly 50,000 customers in Australia and New Zealand.

All of Harmoney’s loan products are unsecured.

Unsecured Personal Loan (Excellent credit)

1st year Fixed
Rate 5.35
Comparison
Rate. 6.14

Unsecured Personal Loan (interest rate from 5.35%)

1st year Fixed
Rate 5.35
Comparison
Rate. 6.14

Things you should know about Harmoney loans

Harmoney follows a very simple structure for its loans. While you can borrow for a holiday, education, home improvement, debt consolidation, wedding, car, medical expenses and business, there are several fundamentals that underpin these loans. These fundamentals include:

  • Unsecured loan: Harmoney offers an unsecured personal loan only. This does not apply to car loans. Unsecured loans mean you don’t have to put up an asset such as your car to secure the loan. Unsecured loans are faster to process.
  • Tiered rates: Harmoney works off a tiered rate system. Those with an excellent credit history, will be eligible for the company’s lowest interest rate. If your credit rating is poor, you will receive a higher interest rate – in some cases that could be as high as 20%.
  • Flexible payment terms: You can choose your billing frequency, whether it’s weekly, fortnightly or monthly.
  • Redraw facility: Harmoney offers a redraw facility with its personal loan, in case you need to dip into extra repayments you have made.
  • Top ups: If you run out of funds during a home renovation, or surprise expenses crop up, you can apply for a top up on your loan. If approved, you can borrow additional funds for a fee of $500.
  • $500 flat rate upfront fee: A fee of $500 is charged for taking out a loan.
  • $0 ongoing fees: Beyond the initial $500 fee, there are no charges for administration costs.
  • Late fees: Late fees may apply if you miss a payment.
  • Dishonour fees: Borrowers with no issues paying back their loan, will not have to worry about dishonour fees. However, borrowers who fall behind could be in trouble. If you can’t repay the loan and are referred to a debt collector, you will have to pay the peer to peer provider’s out of pocket expenses.

Types of loans

1. Debt Consolidation

While, interest rates can be high, Hamoney’s debt Consolidation Loan does enable you to refinance your debt in a matter of minutes. Good credit history gives you the opportunity to service the debt at a lower rate than is originally offered. You can borrow between $2000 and $50,000 for a term between three and five years. There is a $275 or $575 establishment fee, but no early repayment fee.

2. Home Improvement

The same terms apply as with Harmoney’s Debt Consolidation Loan. You can borrow between $2000 and $50,000 for a term between three and five years. There is a $275 or $575 establishment fee, but no early repayment fee. You can complete your application online, with most people receiving their funds within 24 hours.

3. Wedding Loan

Minimum loan amount is $5000 for a Wedding Loan. The loan is for any expenses related to the wedding and if any money is left over, it can be used toward a honeymoon. However, if you are using the money to travel post your wedding, Harmoney recommends a Travel Loan. Loan terms are for three or five years.

4. Holiday Loan

Holiday Loans can be used for flights, accommodation, tours, food and drink, accessories, travel insurance and spending money. The Holiday Loan has a cooling off period of seven days. However, if you have to cancel your holiday after this period, you can payout the loan early, but no fees or interest will be refunded.

5. Education Loans

Education Loans are for education expenses. Loans are generally funded within 24 hours and as with all the other loans, there is a $275 or $575 establishment fee, but no early repayment fee and the loan can be taken out for between three and five years for between $2000 and $50,000.

6. Medical Expenses

If you need funds for surgery, dental emergencies or other medical expenses including recovery and have a stable income, Harmoney has you covered.

7. Business Loans

Harmoney’s Business Loan covers expenses including buying or upgrading equipment, inventory, services and registration fees and short-term cashflow. While there isn’t much difference to the general Personal Loan, if you are self-employed you will have to provide personal and business accounts from the last 3 months, a personal tax return and profit and loss statement from the last financial year.

8. Car Loans

Car loans are for the purchase of a vehicle and related costs, including on-road costs or insurance. You should only borrow what you need and can purchase any type of vehicle you like. Loans are a minimum $2000.

Pros

  • Flexible payment options
  • $0 ongoing fees
  • P2P lending takes out the middleman and connects borrowers directly with investors
  • Redraw facility
  • Technology based lending decisions

Cons

  • $500 fee to top up a loan.
  • Very high interest rates for bad credit history
  • If you can’t repay the loan and are referred to a debt collector, you will have to pay the peer to peer provider’s out of pocket expenses.