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Harmoney Loans Review

We review one of New Zealand's most active personal lenders, explaining the fees, pros and cons and everything you need to know to help decide of Harmoney is right for you.
Updated 15 November 2023
Summary of Harmoney
  • Borrow between $2,000 and up to $70,000 - secured fixed rates from 9.89% p.a. to 21.49% p.a. and unsecured fixed rates from 9.99% p.a. to 24.99% p.a.
  • Loan Establishment fee of $150
  • Early repayment permitted without penalty.
  • Unlike banks and traditional lenders, applications are made online and only take a few minutes.
  • Loan approvals are mostly provided within 24 hours, giving borrowers certainty about the interest rate charged.
  • Harmoney predominantly serves customers seeking funds for personal use, car purchases, debt restructuring and consolidation, and other pressing requirements.
  • The platform emphasises its technological advantages, offering "a streamlined and efficient application process", different from banks and face-to-face lenders who take time to review and make lending decisions.
Our Review of Harmoney
  • In this review, we analyse Harmoney, one of New Zealand's largest non-bank personal lenders.
  • ​Borrowers are attracted by competitive interest rates, with 7.99% p.a. being the introductory rate for applicants with good credit. 
  • Harmoney had lent to 100,000+ borrowers by mid 2023 and has become one of New Zealand's trusted lenders.
  •  A point of difference between Harmoney and other lenders is that Harmoney provides  personal loans and car loans, which can be secured or unsecured.

​Our review covers:
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MoneyHub Founder Christopher Walsh shares his comments about Harmoney:

Harmoney is our Favourite Online Lender in our 2023 Editor's Choice Awards.
"Harmoney clearly understands the modern borrower's need for speed and clarity. While traditional banks might make you wade through a drawn-out process, Harmoney is revolutionising the game by offering quick online solutions. I'm in favour of this approach because it simplifies the task of comparing interest rates and associated fees across lenders, helping individuals make the most informed decision tailored to their needs. With more data points, everyone is a winner, and I know all too well that far too many New Zealanders overpay for personal loans."

"Harmoney fills an essential gap for those who may not have assets to offer as collateral by offering unsecured loans. In a market climate where lending is fraught with risks, it's commendable to see them actively expanding their user base."

"While the allure of Harmoney's transparent rates can be hard to resist, I always advocate for a comprehensive assessment before making any borrowing commitments. Ensure you've weighed the full borrowing cost, factoring in establishment fees and ongoing charges. The entire loan cost counts - for instance, repaying $14,000 for an $11,000 loan is more favourable than repaying $16,500. Always compare the wider market and resist making hasty decisions."
Christopher Walsh
MoneyHub Founder

Understanding Harmoney's Minimum Borrowing Requirements

Harmoney’s borrowers are, historically, individuals wanting to borrow money to repay debt or finance home improvements. Harmoney has a strict application process - only individuals who meet the following criteria can borrow from the platform:
  • Be at least 18 years old
  • Be able to afford the loan you are applying for
  • Provide identity confirmation with either a valid New Zealand Driver’s License or a valid New Zealand Passport.
  • Provide bank statements for the last three months (these will be processed and assessed by a credit agency to see your borrowing ability)
  • You’ll need to list all income sources, your assets (e.g. house, investments, savings etc.), liabilities (e.g. credit cards, personal loans etc.) and your mortgage or rent expenses (separately from liabilities).

Harmoney, like any lender, is tightly regulated by legislation to protect borrowers. With every application, you'll need to provide:
  • Bank statements for the last 90 days (via an online tool, or submitted in PDF format)

Harmoney is clear in stating that all decisions are subject to responsible lending inquiries and checks.

Applying for a Loan with Harmoney

Getting a loan quote and making an application
  1. You can get a free quote which helps you decide if the interest rate is reasonable, or if you should apply elsewhere.
  2. You will be assigned a credit grade which ultimately decides the interest rate on the loan. The better your credit grade (i.e. A1 – A5), the lower the interest rate. Harmoney offers a fixed rate range from 9.89% p.a to 21.49% p.a..
  3. Loan application assessments are made fairly quickly, and if your loan is approved, you have 60 days to accept it.
  4. If you accept a loan, you'll be charged a $150 fee which is added to the loan total (known as the Loan Establishment fee of $150).
  • Harmoney borrowers apply for loans for a range of purposes, including debt consolidation, home improvements, weddings, car finance, holidays, education expenses, medical expenses and business loans.

Pros & Cons of Harmoney

Pros:
  1. Digital Efficiency: Harmoney is a paperless, 100% online loan management system. This ensures swift decision-making and personalised interest rates based on their credit history, income, and assets.
  2. Accessible Account Management: Unlike some other lenders, Harmoney allows borrowers to log in and check their outstanding balance at any given moment, enhancing transparency and making budgeting much easier.
  3. Versatile Repayment Structure: Harmoney notably allows for early loan repayments without penalties. This flexibility is evidenced by the fact that roughly 11% of all finalised loans on the platform are settled ahead of schedule.
  4. Tailored Loan Amounts: Borrowers can borrow between $2,000 and $70,000 with 3, 5 or 7-year repayment terms.
  5. Clear Fee Structure: Beyond the interest rate payable to lenders, Harmoney's fee structure is clear.

Cons:
  1. Interest Rates: While personalised, some might perceive interest rates as high, especially when compared to secured loan options.

But, be aware:
  • Borrowers also pay an additional fee if they wish to borrow with payment protection insurance.
  • ​Like any lending platform, penalties can escalate if payments are missed or defaulted on. It's a general practice among personal lenders, but borrowers must manage their finances effectively.
  • Always compare the offer you get against other potential options. Our comparisons on car loans, personal loans, and debt consolidation loans provide insights into alternative lenders renowned for assisting borrowers with robust credit histories.

Have the best chance of loan success
The speed and success of an approved loan will depend on how well you complete your loan application. For the best success, be sure to:
  • Maintain honesty throughout the application, answering all queries truthfully.
  • Fill out every segment of the application: Given that personal loans rank among New Zealanders' most expensive debts (next to mortgages), many applicants prefer a comprehensive breakdown of their financial scenario. Should you encounter challenges, Harmoney's team is on standby for assistance.
  • Understand the process: Harmoney delves deep into your financial backdrop, which can entail sharing your banking credentials, which some may find invasive. Alternatively, you can dispatch them as PDFs to Harmoney, though this could delay the loan assessment time. 

​Harmoney Fees – What Fees are Charged to Borrowers?

  • Each borrower pays a $150 fee when they receive their loan funds (Loan Establishment fee).
  • A late payment or failed payment levies an overdue fee ($20 every 30 days) and dishonour fee ($15 per transaction) respectively.
  • Borrowers also pay an additional fee if they wish to borrow with payment protection insurance.
  • Harmoney also plans to introduce a “monthly account maintenance fee” similar to a bank account fee for borrowers to use its platform.

Harmoney Loan experience

Harmoney has lots of positive customer feedback on its Google for Business page. Complaints from applicants primarily focus on the interest rates offered, which can be high for a number of reasons. Before applying, Harmoney invites potential borrowers to 'get a quote' to see the exact interest rate you'll be charged.

​As stated above, the ability to repay the loan early without penalty can make the overall loan cost a lot cheaper than many other providers charging the same interest rate. 

Changing your mind without penalty
  1. You can cancel a Harmoney loan within seven working days of the day Harmoney emails you the loan disclosure documents and advances the money.
  2. If you cancel the loan during the cooling-off period, you will not be charged the Establishment Fee.
  3. You will only need to repay only the net amount you wanted to borrow and that has been advanced to you.

​Harmoney Security

A secured loan is where a borrower puts up an asset (like a vehicle or house) as collateral for a loan. Harmoney offers both secured and unsecured loans. In almost all instances, secured loans have lower interest rates than unsecured loans given the risk if lower to Harmoney should you default. 

The asset the loan is secured over can be repossessed if you miss too many loan repayments and default on your loan. Unlike other lenders, Harmoney doesn't charge a security registration fee. This means the interest rate and upfront application fee is all you'll pay whether the loan is secured or unsecured.

Harmoney Loans - Our Conclusion

  • Harmoney offers a no-obligation quote for a loan, and the process is easy to follow and done online. 
  • Any potential borrower can get a "yes" or "no" from Harmoney within 24 hours, and if it's a "yes" they'll get an interest rate specific to their application.
  • Borrowers can compare the Harmoney offer with that of others as it's valid for up to 60 days. 
  • Harmoney markets itself by saying it offers "Total transparency and no sneaky business". We agree with this comment - Harmoney is upfront with its interest rates and fees so you can compare other options. You can make early repayments without penalty, and access your loan balance 24/7 via the Harmoney website.
  • The Loan Establishment fee of $150 is added to the loan should you decide to go ahead. 
  • Repayments work like any other debt, and there is a credit team to talk to if the borrower falls behind or needs to make a hardship application. 
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