Our Guide to Harmoney

• In this guide, we analyse Harmoney, one of New Zealand's largest non-bank personal lenders.
• ​Borrowers are attracted by competitive interest rates, with 6.99% p.a. being the introductory rate for applicants with good credit. 
• Harmoney had lent to over 50,000 borrowers by mid 2020 and has become one of New Zealand's trusted lenders.
• A point of difference between Harmoney and other lenders is that Harmoney provides both personal loans and business loans. Further to that, none of the loans advanced are secured against any collateral (car, home, business or personal property). This can make the investment a higher risk. 

In this guide, we look at what Harmoney offers for Borrowers. We cover:

• Harmoney Borrowing Review
• Harmoney Interest Rates
• Benefits Of Harmoney​
• Harmoney Fees – How Fees Are Charged To Borrowers
• Conclusion

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)

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 6.99% p.a. to 19.99%.
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 fee, added to the loan total, depending on the amount borrowed:

• $200 for loans under $5,000
• $350 for loans $5,000 and over
• 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.

When a loan application is approved, it is assigned a "grade" with a corresponding interest rate. Harmoney currently offers the following interest rates:

A major benefit of borrowing through Harmoney is that it's 100% managed online without paperwork.  Decisions are made quickly, with a personalised interest rate which takes into account your credit history, income and assets. You can log in and see the balance you owe at any time which is a service not always available from other lenders.

Another benefit is the zero penalty for paying loans off early. This differs from other personal loan providers, and early repayment is very common on the Harmoney platform, with approximately 11% of all completed loans being paid off early.

Borrowers are required to pay their interest rate to lenders as well as a fee to Harmoney, and a separate fee if they want to contribute to a payment protection insurance premium.

The speed and success of a loan being approved will depend on how well you complete your loan applicant. For the best success, be sure to:

1. Be honest when answering all questions
2. Complete every section - leaving blanks can raise issues
3. Insert the most up to date numbers you have for income, debts and other related personal finance questions

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.

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.