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Nectar Review - August 2024

We review Nectar, a technology-focused personal lender, uniquely offering a fast application process for unsecured loans. We cover the loans available, fees, pros and cons and everything you need to know to help decide if Nectar is right for you.
Updated 25 August 2024 
Summary of Nectar
  • Nectar is an online lender that focuses on unsecured lending, with interest rates between 11.95% and 29.95% p.a, with a focus on customers borrowing for personal needs, cars, debt consolidation and other urgent needs. 
  • Nectar states that they "use technology to provide an easier and faster way for people to get a loan". Loans are for amounts between $2,000 and $40,000, although the company. Loan terms are between six months and five years.
  • Nectar actively positions itself as a fast-application lender, promoting a 'seven minute application process that provides a loan quote including your interest rate, maximum borrowing amount and repayment options, and if approved, same-day payment to your account.
  • Fees include a $240 loan establishment fee, and a $1.75 fee for each repayment until the loan is repaid. If you are referred to Nectar by a broker, you may also be charged an additional fee by the broker.  These fees are in line with other lenders and finance brokers such as Harmoney, Simplify, MTF Finance, banks and finance companies.
  • Nectar is a relatively new entrant to personal lending sector, launching in 2017, and raising more money in 2023 to expand its operation and lend more with its sole focus on unsecured loans.
  • Early repayment is permitted without a fee.

In this guide, we look at what Nectar offers for borrowers. We cover:
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MoneyHub Founder Christopher Walsh shares his comments about Nectar

"Nectar probably knows that anyone looking for a personal loans wants a quick answer and a transparent interest rate. Unlike banks which are comparatively a slow process, Nectar joins the likes of Harmoney in offering an online loan process that gives fast answers. I like this because it's a low-touch approach whereby you can easily compare the interest rate and fees with other borrowers and make an informed decision about what's right for you".

"Unsecured lending won't be for everyone - secured loans have historically offered better interest rates. However, I appreciate not everyone has that option and Nectar is a lender actively lending and growing its customer base at a time when it's risky to lend money".

"Before diving into any loan, exploring all your options is always good. Nectar's transparent rate range can be enticing. However, always remember to factor in the full cost of borrowing, including establishment fees, monthly charges and any third party fees such as broker fees, to ensure you make the best financial decision for your circumstances. What's important is the total cost of the loan - if you're repaying $15,000 for a $12,000 loan, that, for example, is a better deal than paying $17,000 - please compare the market and don't rush into anything".
Christopher Walsh
MoneyHub Founder

Understanding Nectar's Minimum Borrowing Requirements

Nectar borrowers are, historically, individuals looking for a personal loan for any number of reasons, with the average loan sitting at around $11,500 per media announcements. Nectar's application process is strict - only individuals who meet the following criteria can borrow:
  • Be at least 18 years old
  • Have a regular income
  • Be a permanent resident
  • 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, as well as any foreign passport, or a NZ Firearms license.
  • Proof of address
  • Stable credit history

Nectar, 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)

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

Applying for a Loan with Nectar

Requesting a quote for a personal loan follows a standard process:
  1. You can make an application whereby you'll need to select how much you want to borrow. You'll need to also choose why you're borrowing - e.g. money to cover bills, emergency expenses, debt consolidation, family reasons, car-related, rent/bond, and a few other options.
  2. You'll need to provide your name, date of birth, gender etc, as well as provide your NZ Driver's licence or passport number.
  3. Once done, you'll be promoted to open a Nectar account, and then enter in more personal financial details - your address, residence status, relationship, children etc. 
  4. You'll then need to select your income type (full-time, part-time, self-employed etc). (income per week, fortnight or month, living situation and other essentials).
  5. Once complete, Nectar needs to understand your finances and uses Credit Sense and their technology to analyse your bank statements. You'll need to enter in your online banking details (e.g. username and password). This makes the process fast and secure.
  6. You’ll then automtaically either be offered a loan amount with an interest rate, and repayment options or you may be referred to a loan consultant, or if you are outside Nectar’s lending criteria, be declined.
  7. If you draw down a loan, you'll be charged a establishment fee which is added to the loan total.
  8. You'll be charged a $1.75 fee for each repayment you make until the loan is repaid. This is an ongoing fee which is designed to cover the costs of matching your payments and deducting them from the balance you owe, customer support and all related assistance.
  9. You can log in and view their account transactions and current balance at any time, or request a top up loan amount.

How long does it take for Nectar to approve a loan application? Is it a quick turnaround time compared to other lenders?

Nectar promotes a "simple, 7 minute application" whereby you'll get a "personalised loan quote" and can "select the amount and payment option that suits you". Because Nectar is 100% online, anyone who submits their bank details and is approved and signs a contract can, per their technology, receives funds usually within the same day. However, it's essential to balance speed with price and compare personal loan offers before making any decision.

Pros and Cons of Nectar

Pros:
  • Technology focused: Nectar is fast and simple, and its online reviews are arguably among the best in New Zealand for anyone looking for an unsecured loan, signalling a service that's trusted amongst borrowers.
  • Wise range in loan amounts: Borrowers can choose between $2,000 and $40,000, and choose to repay the amount weekly, fortnightly or monthly over six months to five years.
  • Transparency: Nectar is transparent about interest rates being based on a borrower's credit history. Nectar’s system provides a competitive interest rate whether you are a homeowner with a great credit history, or may be just starting out.
  • Early Repayment Option: Nectar offers early loan repayments without fees, which means you can overpay (or eliminate the debt altogether) if you have sufficient funds well before it's due.
  • Positive Feedback: Nectar has received over 1,000+ 5-star reviews on Feefo and Google, indicating high customer satisfaction.

Cons:
  • Interest Rates: The interest rates range from 11.95% and 29.95% p.a, which might be steep for some individuals.
  • Missed Payment Fees: Fees can be steep if payments are missed or defaulted on.

But, be aware:
  1. Fees can be high if you miss payments or default. This is standard with any personal lender but it's essential to be aware of to manage your budget and personal finances. However, Nectar does not charge penalty interest like many lenders and waives any late payment fee if you bring your account up to date within 5 days.
  2. Always compare the offer you receive with other options. Our car loans, personal loans and debt consolidation loans comparisons list alternative lenders who are known for providing loans to borrowers with strong 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:
  1. Be honest when answering all questions.
  2. Complete every section as best you can - given personal lending is often the second most expensive debt people take on (after their mortgage), many New Zealanders want to be able to explain their financial situation or have questions. If you need help, contact Nectar's team to support you as it's critical your answers are clear.
  3. Understand the process upfront - Nectar needs to understand your finances and uses Credit Sense and their technology to analyse your bank statements. This requires entering in your banking details, which some people may not be comfortable with. We suggest talking to Nectar’s team if you have any concerns with this

Nectar's Fees – What Fees are Charged to Borrowers?

Nectar has two fee types - loan fees and missed payment fees. Most borrowers will only detail with loan fees, but it's best to understand everything before signing any loan agreement. Our summary of fees below is specific to unsecured loans only.

Loan Fees:
  1. Loan Establishment Fee: This is a one-time fee added to your loan when it's set up. It can go up to $240 and is discounted for Nectar’s existing customers.
  2. Agent Fee: If you're referred to Nectar by a broker, you might be charged a one-time fee by the broker, which can be added to your loan.
  3. Monthly Admin Fee: This is set at $1.75 monthly repayment fee for each repayment you make

Missed Payment Penalties & Fees:
  1. Dishonour Charge: Should a direct debit or any other payment not be completed by its due date, Nectar imposes a $15 fee to offset the transaction costs they face.
  2. Late Payment Fee: If payments aren't made within five days of their scheduled due date, Nectar will apply a $25 monthly fee, which will be added to your upcoming payment.
  3. Loan Alteration Charge: Should you request any modifications to the terms of your loan and Nectar approves them, there will be a fee of $30 for such variations.

If you have any questions regarding these fees, it's recommended to contact Nectar directly.

Nectar - Customer Experience and Feedback

Customer reviews published online consistently praise Nectar's exceptional service, specifically noting its efficiency, straightforwardness, and speed. Key observations from the 1,000+ reviews we read (published up to August 2023) include:
  1. Efficiency & Speed: Many customers remarked on how swiftly their applications were processed and approved. The rapid response, especially in communication, was particularly lauded.
  2. Helpfulness & Professionalism: There is a recurring mention of the excellent communication provided by Nectar's staff for their clarity and professionalism.
  3. User-Friendly Process: Many clients appreciated the simple and easy application process. The convenience of applying and getting approval online, even from mobile devices, stood out in many reviews.
  4. Recommendations: Many clients mentioned that they would not hesitate to recommend Nectar to others. This sentiment was echoed repeatedly across various reviews, endorsing the company's credibility and effectiveness.

Regarding complaints, the feedback mostly revolved around certain applications being declined, a few remarks about high-interest rates, or some processes being lengthy, especially for tasks perceived as straightforward, such as top-ups.

Overall Sentiment: Nectar has successfully cultivated a positive customer experience, which we argue is due to the company's focus on communication, efficiency, and simplicity.

Nectar - Our Conclusion

  • Nectar, as an online lender focusing on unsecured personal loans, sets itself apart with its technology-driven approach, aiming to offer customers quick application processes, quotes and decisions.
  • Their interest rates range from 11.95% to 29.95% p.a., catering to various financial needs, from personal expenses to car purchases and debt consolidation. The promise of a 'seven-minute application' and potential same-day decision is certainly appealing to those in urgent need.
  • The transparency Nectar provides, alongside the flexibility of early repayments without fees, are strong points in its favour. Moreover, their overwhelmingly positive feedback, with over 1,000+ 5-star reviews on platforms like Feefo and Google, solidifies their reputation in the personal lending sector.
  • However, potential borrowers should remain cautious. The interest rates can be high for some, and penalties for missed payments are significant. It's also essential to consider the total cost of borrowing, factoring in all fees to ensure a well-informed financial decision.
  • In online lending, where speed and transparency are paramount, Nectar appears to strike a balance. Yet, as always, borrowers should take the time to explore all options and make comparisons before committing. Understanding the total cost of the loan and comparing market offerings is crucial to ensuring the best financial decision, whether it be a loan for car finance, debt consolidation or a personal loan for anything else.
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