PERSONAL LOANS

With an online loan, you can access opportunities today that might be out of reach without savings – sometimes for many years.

Lenders, or loan providers, earn money by charging interest and other fees on a personal loan. Interest is a fee that relates specifically to the money borrowed, while other fees relate to costs associated with administering the loan.

While these underlying principles are the same for most loan providers, the experience of applying for a loan can be very different – from the amount you can borrow to interest rates and fees to the level of customer service and support they provide.

Since our beginnings in 2014, Harmoney has sought to improve the experience of borrowers. Our purpose is to help and inspire people to achieve their goals by providing personal loans that are friendly, fair and simple to use.

Loan purposes

A personal loan can be used for almost any purpose you can think of. At Harmoney, some of our most popular loans are for debt consolidation, home improvements and renovations, car and vehicle loans and small business loans, but we also offer loans for other purposes – from travel and holiday loans to medical expenses and options in between.

Whatever you need to borrow money for, the chances are we can help.

Comparing a personal loan to other loan products

Besides personal loans, there are other options for borrowing money such as credit cards, store cards, hire purchase (HP) and buy-now-pay-later (e.g. Afterpay, LayBuy, GenoaPay).

Here are some important points to consider when comparing loan products.

Loan amount

A personal loan can be taken out for a relatively small sum or many thousands. Harmoney loans range from [lower limit] up to [upper limit]. This can make a Harmoney online loan suitable for many loan purposes that might otherwise be challenging to save for in a reasonable time.

Credit cards and HP borrowing limits can be similar to a personal loan, whereas store cards and buy-now-pay-later are commonly used for smaller amounts.

Interest rates and fees

Interest rates and fees can vary as much as the companies that offer loans, so it pays to research loan providers you’re considering using.

At Harmoney, we openly share our interest rates and fees for personal loans to help people make an informed choice about the lender they choose.

One key difference between Harmoney and most other lenders is that we offer personalised interest rates. When you apply for a personal loan with us, we’ll give you a quote based on your personal circumstances. This is sometimes called risk-based interest rates.

Many loan providers have a one-size-fits-all approach where the same interest rate applies to everyone. Since the rate isn’t personalised, it may benefit some (higher risk borrowers) while disadvantaging others (lower risk borrowers).

At Harmoney, we also work hard to keep our fees straightforward and easy to understand. For most borrowers there’s only one fee to pay, but if you fall behind in your repayments, there are two other fees that may apply.

Some personal loans and credit cards may charge a monthly account fee or other fees. This all adds to the cost of a loan.

That’s why it’s important to look at the total cost of borrowing when you’re comparing loan products. A low interest rate can look enticing, but fees can often mount up, so the total cost of borrowing could work out the same or more than other options. When you apply for a loan quote from Harmoney, we let you know the total cost of borrowing so you can see upfront what the cost of your online loan will be. We also provide some detailed examples of the cost of borrowing from a range of loans.

Loan term

The repayment period (loan term) is the point where borrowing options most differ. Personal loans generally have a fixed maximum loan term and this is used to help calculate your monthly repayment.

Harmoney offers 3 or 5 year maximum loan terms. This gives you certainty that, as long as you maintain your monthly repayments, the loan will be fully paid off at the end of the term. We also give you the flexibility to repay your loan earlier without charging any early repayment fees or penalties – so if you can pay your loan off in 1 or 2 years instead of 3, you can save on interest fees without being penalised.

By contrast, credit cards generally do not have a loan term, but instead have a credit limit and monthly minimum repayment. The cost of using a credit card can quickly add up if you’re not organised and disciplined, and it can sometimes take a lot of time and effort to finally pay off a credit card balance. Many people ultimately revert to a personal loan such as a debt consolidation loan to help them get their credit card debt under control.

Why people use a personal loan

Online loans can be easier to understand compared to other forms of consumer credit products, such as credit cards. With a Harmoney personal loan, your loan quote shows you how much the total cost of borrowing will be, so you can more easily compare your options and plan for your budget.

A personal loan can be more flexible too. Harmoney repayments can be spread out over 3 or 5 year terms, with the option of paying back the loan early without any early repayment fees or penalties.

Downsides of a personal loan

Applying for a personal loan the traditional way can be complicated. Depending on the provider, you may need to attend a meeting with a loan manager. To protect both lenders and borrowers, you’ll also have to show evidence of your identity and finances.

Harmoney simplifies the process of applying for a personal loan by making it 100% online, avoiding awkward in-person meetings. We also simplify the documents you need to provide by using automated bank statement retrieval and credit files.

Personal loans are a legally binding agreement, imposing financial commitments on both the lender and the borrower. You should think carefully about taking out a personal loan or any consumer credit product and make sure you can afford the repayments. If you change your mind about taking out a loan with Harmoney, or you no longer need the funds, you are able to withdraw/cancel your loan without penalty for up to 7 business days.

We know that personal circumstances can change and a lot can happen during the term of a loan. If there are hiccups along the way or you’re worried about your financial stability, Harmoney’s Customer Support Team is here to help. We can also help if you are faced with unforeseen financial hardship.