Harmoney vs Moola - Which one is best for you?

Updated 24 February 2022

Know this first:

• Harmoney is a non-bank alternative lender. This means it offers personal loans between $2,000 and $70,000 with repayment periods between 3 and 5 years at competitive interest rates (6.99% to 19.99%). The interest rate you're charged depends on your credit score and how much you can afford. Harmoney has been operating for several years and is part-owned by Trade Me and Heartland Bank.
• Moola is a payday lender. This means it offers short-term, high-interest loans between $500 and $2,000, and is privately owned. Currently, there is a single fixed interest rate for all loans - 292% p.a. The maximum loan period is 183 days which means all loans must be repaid within six months of taking the loan.

This guide compares the differences between Harmoney and Moola in terms of fees, interest rates, repayment terms, loan processing and support. Our guide covers:

• Interest Rates and Fees: Who is Cheaper - Harmoney vs Moola?
• Harmoney vs Moola: The Key Differences
• Final thoughts

​Know this first: Moola is a Payday lender, which means its interest rates are similar to its competitors - 292% p.a. isn't out of the ordinary within its industry. 

Harmoney, with its 6.99% to 19.99% p.a. interest rate for personal loans, positions itself as an alternative lender to a bank or finance company and offers a 100% online application experience. 

Our view: Interest costs are the biggest factor that determines the cost of a loan. Harmoney's highest interest rate is 19.99% p.a., whereas Moola's interest rate is 292% p.a regardless of your credit history and affordability. This means Harmoney's interest rate is less than 1/10th of Moola's, which means the cost of repaying a Harmoney loan will be 1/10th of a Moola loan.

Unsure if Harmoney or Moola is right for you? Given the significantly lower interest rates offered by Harmoney, and the nature of Payday lending in general, only those in serious financial trouble could, in good faith, consider a Moola loan. However, we believe the 292% p.a. interest rate will be problematic for some borrowers when it comes to making repayments. 

​Our Thoughts on Harmoney:

• There's no guarantee any borrower will be offered the 6.99% p.a. rate, but we believe Harmoney significantly challenges the established banking lenders and, per its recently filed financial statements, continues to increase the number of loans it makes year-on-year.
• Harmoney, being 100% online, offers a simple way to manage your loan and penalty-free early repayments help keep interest costs down.
• Best for: Anyone looking for a personal loan (be it for car finance, debt consolidation, home improvement or similar) who has a healthy credit history and income level to qualify for a low interest rate.

Our Thoughts on Moola:

• Disclaimer: MoneyHub is not favourable towards any Payday loan company given the high interest rates.
• Moola is no exception within the industry with its 292% p.a. interest rates. If Moola is to be an option, we believe it should be used in the most extreme of personal finance circumstances. Before getting to that stage, there are a number of alternatives in our debt help guide.

Overall 

• Harmoney is a mass-market lender, whereas we believe Moola is a specialist 'last resort' option for those in desperate need. Both offer 100% online applications and approvals, meaning money can be advanced in 1-2 days if an application is successful and accepted by the borrower.

Do you have experience with Harmoney and/or Moola that you'd like to share? Email our research team today.