Harmoney is a marketplace lender that offers peer-to-peer lending.
Rather than applying to a bank and waiting for your personal loan to be approved, you apply online at Harmoney and investors can individually decide if they want to lend you money and how much they’ll contribute.
Harmoney was founded in New Zealand in 2014 and was the country’s first licensed marketplace lending website. It now also operates in Australia.
Harmoney personal loan repayment calculator
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Pros and cons
- Interest rate may be low
- Extra repayments without penalty
- No monthly fees
- Interest rate may be very high
- No branch access
- No redraw facility
Harmoney personal loans rates
Go to site
Fixed up to 29.99%
based on $30,000 loan amount for 5 years
Fully drawn advance
Features of Harmoney personal loans
All Harmoney personal loans are unsecured, so a customer doesn’t need to use an asset like a property or car as collateral.
Personal loan amount
$5,000 - $70,000.
Tailored interest rates
The interest rate on Harmoney personal loans is set by a customer’s credit score. The higher your score, the lower your interest rate. Interest is charged daily and charged on each repayment.
Personal loan terms
Three to five years.
- Weekly, fortnightly, monthly
- Additional payments can be made without penalty
- Pay entire personal loan off early without penalty
- Establishment fee charged (which is added to loan amount).
- No monthly fee
- Penalty fee charged for dishonoured payments
Harmoney personal loans – customer service
Harmoney is an online marketplace lender, so most of its customer service is online, although borrowers can also call a free customer service number or post their correspondence.
- Social media (Twitter, Facebook, Linkedin)
Who is eligible for a Harmoney personal loan?
You can’t apply for a personal loan with Harmoney if you have had past insolvencies or bankruptcies. You must also meet these conditions:
- Be at least 18
- Be an Australian citizen or permanent resident or New Zealand citizen with a valid Australian driver’s licence, New Zealand passport or Australian passport, a current Australian physical address and an Australian bank account
- Have an acceptable credit record
- Have a bank account
- Apply as an individual rather than a company or other legal entity
How to apply for a Harmoney personal loan
The application process is 100 per cent online. You will need the following information and documents at hand:
- Your name
- Your address
- Employment details
- Proof of identification (government-issued photo ID like driver’s license or passport)
Rather than submitting bank records and pay slips, Harmoney verifies your information by electronically accessing (with your permission) the following:
- Your bank account records to verify income and expenses
- Consumer credit bureaus to assess your credit history
- Motor registry departments (for your driver’s licence) or the Department of Foreign Affairs and Trade (for your passport) to validate identification
Unlike big banks and most other Australian lenders, Harmoney practices peer-to-peer lending. So once you apply for a personal loan, investors check out your listing and decide if they want to fund your personal loan, and how much they want to invest.
Your personal loan will be settled as soon as it’s fully funded.
After 14 days, if your personal loan hasn’t been funded, Harmoney will contact you and offer other options, including withdrawing your listing or relisting the loan for the same or a lesser amount.
Harmoney personal loans review
Harmoney unsecured personal loans can be used for a wide variety of purposes, including consolidating debt, renovations or a holiday.
The peer-to-peer lender offers personalised interest rates, which reward borrowers with excellent and good credit scores with very low interest rates on their personal loans. Borrowers with average or below-average credit profiles will be charged high interest rates, because they are seen as a risk.
The online application process for a personal loan is reasonably straightforward, however the speed at which it is processed depends on how quickly individual investors decide to lend you money. This process can take just a few hours, but it could also take several days and you may not find anyone willing to lend you money.
There is only one fee - an upfront fee. There are no ongoing fees and no charges if you make extra repayments or pay off your entire loan early.
Can you refinance a $5000 personal loan?
Many personal loans, much like home loans, can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.
If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.
How much can you borrow with a bad credit personal loan?
Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans – they also get loaned less money. Each lender has its own policies, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.
What is the average interest rate on personal loans for single parents?
Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.
What is a personal loan?
A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan – however, the process is easier and faster than taking out a mortgage.
Loan sizes usually range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.
What is a bad credit personal loan?
A bad credit personal loan is a personal loan designed for somebody with a bad credit history. They have higher interest rates than regular personal loans and are also harder to access.
Can I get guaranteed approval for a bad credit personal loan?
Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application.
It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit, because there’s a higher likelihood that the personal loan will be repaid.
So a borrower with good credit is more likely to have a loan approved and to get that approval faster, while a borrower with bad credit is less likely to have a loan approved and to get that approval slower.
Do student personal loans require security?
While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, with higher interest rates.
Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will guarantee the loan, taking on the financial responsibility if the borrower defaults.
Should I get a fixed or variable personal loan?
Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.
A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent, without worrying about ending up out of pocket if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.
What do credit scores have to do with personal loan interest rates?
There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to decide what interest rates to offer to potential borrowers.
If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate.
If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.
Can single mothers get personal loans online?
Many lenders offer online applications for personal loans, which can be convenient for borrowers who don’t have a lot of free time. If you’re not confident your personal loan application will be approved, you may want to consider contacting the lender by email, live chat, phone, or by visiting a branch, to discuss your situation before applying.
Can unemployed single parents get personal loans?
It can be more difficult for unemployed borrowers to successfully apply for a personal loan. Most lenders require borrowers to have a regular income available to cover the cost of loan repayments. If you’re self-employed, or if less than half of your income comes from Centrelink, you may not be eligible for some personal loan offers – consider contacting the lender before applying. >
What do single mothers need to apply for a personal loan?
Like other personal loan applicants, single mothers will likely need to provide a few documents to any potential lender, such as personal identification, bank statements (savings, loans, credit cards), proof of address, and proof of income (payslips, tax returns).
Where can I get a personal loan?
The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:
- The big four banks (ANZ, Commonwealth Bank, NAB and Westpac)
- Smaller banks (such as Bank of Queensland, Bendigo Bank and MyState)
- Mutual banks (such as Heritage Bank, Greater Bank and Newcastle Permanent)
- Credit unions (such as People’s Choice Credit Union, BCU and Community First Credit Union)
- Non-bank lenders (such as Pepper Money, Liberty and RACV)
- Peer-to-peer marketplaces (such as Harmoney, SocietyOne and RateSetter)
There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.
Is it hard to improve your credit score?
It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. There are nine steps you can take to improve your credit score, most of which are simple to follow.
As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.
What can quick loans be used for?
Many borrowers use quick loans to cover short-term costs, such as paying for car repairs, medical bills, or replacing broken appliances or electronics.
Before applying for a quick loan, consider whether other options are available, such as working out a payment plan or applying for an advance or extension.