Making the decision to apply for a personal loan isn’t always easy. While this type of loan can offer a quick fix to cover either a need or desire, the best way to make sure that this ends up being a positive experience is to find the right lender.
While many New Zealand lenders offer personal loans, Harmoney stands out from the rest because of its unique features, history, and overall ratings.
It’s important to find a lender who will take into account borrowers’ specific needs and provide flexibility in repayment options so that they can actually afford their loans. Because no two lenders are the same, comparing various companies like Harmoney will be beneficial in the long term.
This review of Harmoney will discuss what the company has to offer and what makes it different from other lenders. The loan decision process can be tricky, but this guide will take out some of the guesswork.
What is Harmoney?
Harmoney has been financing New Zealanders since 2014 and has since funded more than $1.6 billion in loans. This financial institution that offers loans as high as $70,000 provides financing for a variety of needs, with flexible payment options.
Types of Loans Harmoney Offers
There is no one-size-fits-all loan with Harmoney. Regardless of the customer’s reason for needing a loan, Harmoney has many loan options to choose from.
- Personal loans, which can be used for medical expenses, holidays, education expenses, weddings, and home improvement purposes
- Car loans
- Debt consolidation loans
- Business loans
Harmoney Interest Rates and Fees
Harmoney applies an establishment fee of $150 for loans ranging from $2,000 up to $70,000. Rates for all loans, the fixed interest rates currently range from 7.99% p.a. (per annum) up to 22.99% p.a.
Requirements to Apply for a Harmoney Loan
To apply for a loan in New Zealand through Harmoney, applicants must:
- Be at least 18 years old;
- Have proof of a stable income; and
- Be a citizen or permanent resident of New Zealand.
Applicants will be approved based on their income and prior borrowing history. A credit analysis will be conducted on each applicant.
Reasons to Choose Harmoney NZ
Here are the pros to consider when deciding if Harmoney is the right fit.
- Fixed interest rate for the life of the loan. Because the interest rate stays the same for the life of the loan, there will be no surprise increases down the road, saving money in the long run.
- No early repayment fee. Those who can pay off their loans early will not be penalised for doing so.
- Small and large loan amounts. Harmoney can cover many financial requests.
Reasons to Avoid Harmoney NZ
Look at the big picture and consider the following cons before deciding to take out a loan with Harmoney.
- Harmoney only offers unsecured personal loans. While this might seem great for borrowers, it does make getting approved for a loan more challenging, because this makes the loans riskier on the lending side.
- Only three- or five-year terms. Those who need a longer term to make the repayments more affordable are limited by the five-year maximum set by the company.
6 Best Features of Harmoney Loans
Harmoney has made a name for itself as a trusted lender because of the features it offers. Here are some of the perks other borrowers enjoy.
1. Average Loan Funding Time of 24 Hours
Most borrowers receive their loan money within 24 hours of signing the disclosures, meaning they have access to the funds immediately.
2. Multiple Repayment Schedule Options
Harmoney offers many repayment options to fit borrowers’ needs. They can choose to repay their loans weekly, fortnightly, or monthly. This is especially helpful for people who prefer to break down payments into smaller, more frequent chunks versus one lump sum.
3. Live Chat Support Between 9 a.m. and 6 p.m.
Those with questions or issues can live chat online with one of the company’s 30-plus specialists between 9 a.m. and 6 p.m. This is especially helpful for those who don’t have time to make a lengthy phone call, or for customers with a simple, easy-to-answer question.
4. 100% Online – 24/7
With this company, there is no need for appointments, in-person meetings, or time spent waiting in a queue. Complete everything online, or check the details of an account from anywhere, any time.
5. Blog Information for Any Loan
Potential borrowers looking for more information about a specific type of loan need look no farther than the variety of guides Harmony publishes on its blog. In addition, the company’s website includes all types of information, such as borrowing rights, understanding financial situations, the way loans work, and more. This feature helps borrowers learn about financing, making them more aware about potential solutions to any borrowing needs they may have in the future.
6. Personal Loan Calculator
Borrowers can estimate their loan repayment amount before filling out a loan application. Use the company’s personal loan calculator to get an idea of what a personal loan could look like. Insert the requested amount, the loan terms, credit score, and payment schedule request. The site will then reveal the estimated fixed payment amount.
Things to Know Before Choosing a Harmoney Loan
Here are some frequently asked questions from New Zealanders looking to do business with Harmoney. Reading through this list could help potential borrowers understand if they will have a successful application, and also keep from wasting their time.
Is it possible for people with bad credit to get a Harmoney loan?
Harmoney assesses each applicant individually, and uses an algorithm to decide if his or her credit history is sufficient for a loan. Harmoney will sometimes deny an application if the applicant’s credit history is unsuitable, based on his or her criteria. In addition, if an applicant’s debt-to-income ratio doesn’t leave room for more borrowing, Harmoney could deny that application, as well. Any approval is based on the company’s discretion.
Does Harmoney still offer peer-to-peer loans?
Peer-to-peer (P2P) lending cuts out the financial institution and matches investors (lenders) directly with applicants (borrowers). The two parties engage in a peer-to-peer loan agreement. Harmoney began its business as a P2P lending platform, but has since moved away from that type of lending since April of 2020. This decision was made because Harmoney concluded that P2P lending is not currently a sustainable market.
How do I pay the establishment fee?
The establishment fee is applied to the loan once an approval offer is made and the applicant accepts the terms of the disclosures. Borrowers are not required to pay the fee up front. It will be added to the total loan amount.
What if I change my mind?
It is important to make a loan decision carefully and know all the information before applying. Harmoney does offer a seven-day cancellation period (from the date of the email containing loan disclosures) for borrowers who change their minds or no longer need their loans. The establishment fee will not be assessed for those who cancel within this time period.
How to Know if Harmoney is The Right Lender for You
- Although Harmoney may not be for everyone, its loans can fit a wide variety of lifestyles. While this company does come with glowing reviews, at the end of the day, potential borrowers must do their own careful research to make sure it is the right fit for what they need.
- Harmoney offers many benefits, from no early repayment fees, to large loan amounts and quick funding. This company can be a great option for those who are in a hurry to get a loan and who have acceptable credit.
- Before making any kind of decision for loans, assess why the loan is needed, and how quickly. Utilise the personal loan calculator feature to determine if a loan is worth it.
- In addition, the fixed rates with Harmoney make its loans appealing because borrowers don’t have to worry about being charged more in the future. Their rates will stay the same, no matter how much Harmoney’s interest rates increase in the years to come.