About interest rates

Everything you need to know about what interest is and how interest rates work.

What is an interest rate?

An interest rate is the rate at which you are being charged for your loan, and it is generally based on a percentage of your loan amount applied over a period of time. Most lending institutions charge a fixed (not subject to change) interest rate, whether it’s against a loan or credit card purchase and repayments.

There are a range of factors that contribute to setting an interest rate, and different banks and financial institutions have their own formulas for calculating the rate.

How Harmoney calculates interest rates

Harmoney’s interest rates are based on your risk grade, amongst other factors. If Harmoney approves your loan application, we will assign a credit grade, which will cap the maximum amount you can borrow, and the interest rate that will apply. In addition to this, we consider your ability to service the loan (i.e. your ability to make repayments), which may further restrict the maximum amount you can borrow, but will have no impact on the interest rate.

We know everyone is different, and the size of your loan and the length of time you wish to pay it back in is going to differ from person to person; which is why our interest rates differ from person to person. Our interest rates are calculated according to the risk grade assigned to you.

Our interest rates and fees

Harmoney’s interest rate and fee structure is totally open and transparent.

About Harmoney's personal loans