top of page
Harmoney_Dot_Red_RGB.png

How are my personal loan repayments calculated, and what are my repayment options?

  • Writer: Harmoney
    Harmoney
  • 20 hours ago
  • 2 min read

Understanding how your personal loan repayments are calculated is key to managing your budget and feeling in control of your finances. At Harmoney, we believe in being clear and transparent about how your repayments are determined and what options are available to you.


Your loan repayments are calculated using a process called amortisation, which ensures that your loan is fully paid off by the end of its term.


How Your Repayments are Calculated

Three main factors determine the amount of your personal loan repayment:

  1. The Principal Loan Amount: The total amount of money you borrowed.

  2. Your Interest Rate: The personalised, fixed interest rate we offered you.

  3. Your Loan Term: The length of time you have to repay the loan (e.g., 3, 5, or 7 years).


Each of your repayments is a fixed amount that includes a portion of both the principal and the interest. Early in your loan term, a larger portion of each payment goes towards paying off the interest. Over time, as your loan balance decreases, a larger portion of your repayment goes towards paying down the principal. This ensures that the loan balance is gradually reduced to zero by the end of the loan term.


Using Our Loan Calculator

While the formula can be complex, you don't have to do the math yourself. The easiest way to see what your repayments could be is to use our online loan calculator. It provides a clear breakdown of your estimated repayments based on the amount you want to borrow and your chosen loan term.


Your Repayment Options

We offer flexible repayment options so you can choose a schedule that aligns with your income and budget. You can choose to make repayments:

  • Weekly: Ideal if you are paid weekly.

  • Fortnightly: A great option for those who are paid every two weeks.

  • Monthly: Often preferred by those on a monthly salary.


The Power of Extra Repayments

Harmoney personal loans are designed with flexibility in mind. You have the freedom to make extra payments at any time and even pay off your loan early, without any extra fees or penalties. By making additional payments, you can:

  • Reduce the total interest paid over the life of the loan.

  • Pay off your loan faster than originally planned.


Making even small, extra payments can have a significant impact on your financial future.


What to Consider When Choosing Repayments

Choosing a repayment frequency that matches your income cycle can help you avoid missed payments. It's a good idea to set up an automatic payment so you never have to worry about a repayment due date. You should also make sure you have enough in your account to cover the payment on time.


If you ever experience financial hardship, you should contact us as soon as possible. We are a responsible lender and can work with you to find a solution.


References:

 
 
bottom of page