Interest rates and fees — archived July 2020
Note: this page was updated on 31 March 2020. See current version. See previous version.
At Harmoney, we’re 100% open and transparent about our rates and fees. If you're thinking about getting a personal loan you can check what interest rate will apply to you through our 100% accurate, online quote. You won't be charged an Establishment Fee until your loan is funded.
Interest rates
Harmoney's interest rates are priced on a risk gradient. Each loan application is attributed a risk grade with an associated interest rate according to Harmoney's credit scorecard. The interest rate on a loan is the interest rate paid by borrowers. Harmoney's risk grades and their corresponding interest rates are displayed in the table below.
- During the loan application, borrowers provide us with some financial information;
- Based on an assessment of this information and the borrower's repayment history, we’ll assign a risk grade to the borrower;
- The borrower will then be able to apply for a loan at the interest rate that corresponds to their risk grade.
| Grade | Interest Rate (p.a.) |
|---|---|
| A1 | 6.99% p.a. |
| A2 | 7.99% p.a. |
| A3 | 9.20% p.a. |
| A4 | 10.50% p.a. |
| A5 | 11.99% p.a. |
| Grade | Interest Rate (p.a.) |
|---|---|
| B1 | 12.39% p.a. |
| B2 | 12.59% p.a. |
| B3 | 12.80% p.a. |
| B4 | 13.99% p.a. |
| B5 | 14.80% p.a. |
| Grade | Interest Rate (p.a.) |
|---|---|
| C1 | 15.90% p.a. |
| C2 | 17.40% p.a. |
| C3 | 17.59% p.a. |
| C4 | 17.99% p.a. |
| C5 | 18.49% p.a. |
| Grade | Interest Rate (p.a.) |
|---|---|
| D1 | 18.99% p.a. |
| D2 | 19.49% p.a. |
| D3 | 19.99% p.a. |
| D4 | 20.99% p.a. |
| D5 | 21.49% p.a. |
| Grade | Interest Rate (p.a.) |
|---|---|
| E1 | 21.99% p.a. |
| E2 | 22.49% p.a. |
| E3 | 23.99% p.a. |
| E4 | 24.29% p.a. |
| E5 | 24.69% p.a. |
Interest rates effective from November 7, 2019. Interest rates are subject to change.
Cost of borrowing
Using the links below, you can download a detailed spreadsheet showing the total cost of borrowing for a range of example loans. The spreadsheet includes 3 and 5 year terms for loan grades A1 - F5.
Loan calculator
For a quick estimate of how much money you can borrow and what your repayments will be like you can use our personal loan calculator
Borrower fees
Establishment Fee
Harmoney charges an up-front, one-off Establishment Fee of $200 for loans of below $5,000, or $450 for loans of $5,000 and above. The Establishment Fee is added to the approved loan amount.
The Establishment Fee will be charged on the loan being advanced. These Establishment Fees also apply to Top Ups.
Dishonour fee
In the case where a repayment is dishonoured, a $15 fee will be charged to the account due to the additional administration required to re-process the payment. The fee will be due in the next payment.
Overdue fee
The Overdue fee is charged if a payment is not made in full and the account goes into arrears. The fee payable is $20 on each of 6, 36, 66, 96, 120 days after the payment date, if the account remains outstanding. The fee will be payable on the next direct debit date.
Legal fees
If enforcement action is required against a borrower, any legal and associated third party costs incurred will be charged to the borrower account. The costs charged are due in the next payment.
Harmoney is no longer offering loans for investment by retail lenders.
Information for lenders
The information below is for Retail Lenders and applies to lending prior to 1 April 2020.
Service fee
Lenders are charged a Service Fee of 1.25% p.a. of the principal and interest payments collected on each note. The service fee is deducted from repayments into the Lender account. The fee is paid to Harmoney for managing borrower repayments and administering the account on behalf of Lenders.
Service Fees are charged on principal and interest when a loan is prepaid early by the borrower, even when that loan is an on platform re-write.
NOTE: The Service fee will be replaced by a Lender fee on all new lending from 13 June, 2016. All lending prior to 13 June, 2016 will continue to incur the Service Fee.
Lender Fee (from 13 June, 2016)
The Lender Fee will apply on all new lending from 13 June 2016. The Lender Fee is charged on gross interest received.
The Lender Fee is tiered, based on how much principal outstanding a Lender has on the Harmoney platform, and Lenders will move up and down tiers as that amount changes. The applicable fee is applied on an individual loan basis, and is fixed at the time the Lender invests in the loan (it does NOT change over the life of the loan regardless of whether the Lender moves up or down tiers).
| Tier | Outstanding Principal | Lender Fee (% of Gross Interest) |
|---|---|---|
| Tier 1 | < $10,000 | 20% |
| Tier 2 | $10,000 - $49,999 | 17.5% |
| Tier 3 | $50,000 + | 15% |
Payment Protect Fees
The Payment Protect fee is calculated as a percentage of the loan amount (including Establishment Fee), rounded to the nearest $25, for those customers who chose to take Payment Protect.
If Payment Protect is taken out on a joint application, it must be taken out by both the primary borrower and the co-Borrower; it cannot be taken out by only one party.
| Event | Rebate Rule |
|---|---|
| Rewrite | The sales commission and management fee are rebated on a pro rata basis.* |
| Prepayment | The unused portion of the management fee is rebated on a pro rata basis.* |
| Charge off | The unused proportion of the management fee is rebated on a pro rata basis.* |
| Full Waiver | The unused proportion of the management fee is rebated on a pro rata basis.* |
* The refund is calculated as follows:
Payment Protect fee Refund = (p × s × (s + 1)) ÷ (t × ( t + 1))
where:
- "p" is the amount of the Payment Protect Fee
- "s" is the number of whole months in the unexpired portion of the period for which the Plan applied
- "t" is the number of whole months for which the Plan applied.