How does Peer-to-Peer Marketplace Lending work?

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Peer-to-Peer Marketplace Lending is where everyday people borrow money from, and lend money to, other other everyday people online. Typically, when you borrow or invest money, there’s a big financial institution in the middle taking a hefty cut and making a hefty profit. P2P Marketplace lending gives the power back to the everyday people instead.

How does peer-to-peer lending work?

Peer-to-Peer Marketplace Lending is where everyday people borrow money from, and lend money to, other everyday people online. Typically, when you borrow or invest money, there’s a big financial institution in the middle taking a hefty cut and making a hefty profit. P2P Marketplace lending gives the power back to the everyday people instead.

What's a 'Peer-to-peer Marketplace'?

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When you think about a bustling marketplace, like a local craft market or a car boot sale, it's really just everyday people selling things to other everyday people. A peer-to-peer marketplace is exactly the same, only it's everyday people lending money to other everyday people.

Harmoney's role is to run this marketplace. Think of us like the town hall where the local craft market is held. Our job is to give these everyday people a place to meet. We also make sure that the people who are in the market are of good standing.

How do Borrowers use the marketplace?

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To list a personal loan in the marketplace, Borrowers complete a 100% online application via Harmoney (click here to learn more). As we facilitate responsible lending, we run a bespoke credit screening on all applications, and assign those who get approved with a personalised interest rate based on their personal circumstances.

Once approved, the Borrower then has an opportunity to tell their story; a chance to explain what they will use the money for. This loan purpose is a big part of what others will use to decide whether to invest in that personal loan or not. Borrowers then have 60 days to list their personal loan.  Click to learn how you can apply to list your personal loan in the marketplace.

How do Lenders use the marketplace?

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Lenders sign up to Harmoney and deposit money into their Harmoney account. The personal loans in our Marketplace are split into $25 chunks, which we call 'notes'. For example, a $10,000 personal loan would be split into 400 notes. This means that rather than putting $X into each loan, an Lender puts X notes into each loan.

By using this fractionalised method, we give our Lenders the ability to diversify their investments over hundreds, even thousands of individual loans. It also means that each individual loan is typically funded by dozens of Lenders, all investing a handful of notes each. Click here to learn more about lending.

How do the repayments work?

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99% of personal loans in the Harmoney marketplace are fully funded within 24 hours (FY17). Once a loan is 100% funded, the Borrower gets their money.

From there, Borrowers begin monthly repayments which they make to the Lenders via Harmoney. These repayments are distributed back to the individual Lenders' Harmoney account as principal and interest payments. The more personal loans an Lender invests in, the quicker these small monthly repayments add up, and the Lender can then either re-invest, or withdraw the funds.

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Why is Harmoney the best choice for everyone?

We give Borrowers a fair deal

  • Fair interest rates from 9.99% p.a.
  • 100% online with no paperwork
  • Unsecured loans up to $35,000
  • 95% of loans funded within 24hrs.

We give Lenders better returns

  • High rate of return
  • Proven reliability of customer credit
  • Diversification of your portfolio
  • F.M.A licensed and regulated.

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36 month term

60 month term

Enter amount from $1,000 -$35,000
$1,000 $35,000
  • 100% online application
  • Rates from 9.99%
  • Up to $35,000, unsecured
  • Funded in hours**

** 99% of loans are funded in 24 hours after submission to the marketplace (FY17).

* Subject to approval and funding. Harmoney’s interest rates start from as low as 9.99% p.a., are offered based on the individual borrower’s credit assessment according to Harmoney’s credit scorecard. In order to be approved and list your loan you must meet Harmoney’s credit criteria and responsible lending requirements. Fees, charges, terms and conditions apply.

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