Interest rates and fees — archived May 2018
Note: this page was updated May 2018. Go to current version. Go to previous version.
At Harmoney, we’re 100% open and transparent about our rates and fees. If you're thinking about getting a loan, you can check what interest rate will apply to you through our No Obligation Loan application process, and you won't be charged a Establishment Fee until your loan is funded. If you're a lender, you'll find details regarding the service fee below.
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 both the interest rate paid by borrowers and the gross interest rate due to lenders. 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% |
| A2 | 7.99% |
| A3 | 9.20% |
| A4 | 10.50% |
| A5 | 11.99% |
| Grade | Interest Rate (p.a.) |
|---|---|
| B1 | 13.39% |
| B2 | 14.75% |
| B3 | 15.80% |
| B4 | 16.99% |
| B5 | 17.80% |
| Grade | Interest Rate (p.a.) |
|---|---|
| C1 | 18.90% |
| C2 | 20.40% |
| C3 | 21.90% |
| C4 | 22.99% |
| C5 | 23.99% |
| Grade | Interest Rate (p.a.) |
|---|---|
| D1 | 24.70% |
| D2 | 25.20% |
| D3 | 25.49% |
| D4 | 25.99% |
| D5 | 26.49% |
| Grade | Interest Rate (p.a.) |
|---|---|
| E1 | 26.99% |
| E2 | 27.49% |
| E3 | 27.99% |
| E4 | 28.29% |
| E5 | 28.69% |
| Grade | Interest Rate (p.a.) |
|---|---|
| F1 | 28.99% |
| F2 | 29.19% |
| F3 | 29.49% |
| F4 | 29.66% |
| F5 | 29.99% |
Interest rates effective from 8th May 2018. Interest rates are subject to change.
Borrowing limits
Borrowers in Harmoney's marketplace are limited in the amount they can borrow, based on the credit grade they are assigned. The following table shows these limits:
| Grade | Borrowing Limit |
|---|---|
| A1 - A5 | $70,000 |
| B1 - B5 | $50,000 |
| C1 - C5 | $40,000 |
| D1 - D5 | $30,000 |
| E1 - E5 | $20,000 |
| F1 - F5 | $10,000 |
Note: After final assessment Harmoney may, in its discretion, specify different ranges of maximum Loan Amounts which you are approved to list for.
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
From 6 September 2018, Harmoney's one-off Establishment Fee will be changed to reflect the loan amount. Loan applications started after 6 September will have the following Establishment Fees:
- $200 for loans under $5,000
- $450 for loans $5,000 and over
Please refer to the New Establishment Fee FAQs for details, including how this change impacts borrowers with a loan application in progress prior to 6 September.
Borrowers who maintain their regular repayment schedule will be charged no additional fees beyond the one-off Establishment Fee.
Establishment Fee
Harmoney charges borrowers 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 borrower’s repayment is dishonoured, a $15 fee will be charged to the borrower’s account due to the additional administration required to re-process the payment. The fee will be due in the borrower's 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 borrower's 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 borrower's next payment.
Payment Protect Fees (borrowers only)
If borrowers choose to add Payment Protect as an add-on to their loan, the Payment Protect fee will be added to their loan total and included in their monthly repayments. The Payment Protect fee is calculated as a percentage of the loan amount (including Establishment Fee), rounded to the nearest $25.
There are two levels of pricing based on the level of cover borrowers require or are eligible for:
| Cover | Included coverage |
|---|---|
| Partial | Terminal illness and death. |
| Complete | Death, terminal illness, disability illness and involuntary redundancy. |
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.
| Term | 36 months | 60 months |
|---|---|---|
| Individual (Complete) | 7.24% | 9.88% |
| Individual (Partial) | 5.92% | 8.18% |
| Co-Borrower (2x Complete) | 9.34% | 12.75% |
| Co-Borrower (2x Partial) | 7.64% | 10.56% |
| Co-Borrower (1x Complete 1x Partial) | 8.49% | 11.66% |
Note: Prices were changed on 15th August 2016. Click here to see old pricing.
Rebate of fee on early repayment
If a borrower prepays their loan in full before the end of their originally set term, without having any payments waived, the Payment Protect fee is rebated pro rata using a formula prescribed by the Credit Contracts and Consumer Finance Act (CCCFA):
Payment Protect refund = ( p × s × ( s + 1)) ÷ ( t × ( t + 1))
Where:
- "p" is the Payment Protect fee amount,
- "s" is the number of whole months in the unexpired portion of the period for which the plan applied,
- and "t" is the number of whole months for which the plan applied.
Lender fees
Service Fee
Lenders are charged a Service Fee of 1.25% 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 will be tiered based on how much principal outstanding each lender has on the Harmoney platform, and lenders will move up and down tiers as that amount changes.
| 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 for Lenders
Harmoney receives a Sales Commission for arranging the sale of the Payment Protect. The commission is 20.00% of the Payment Protect Fee paid by the borrower (rounded to the nearest $25 note).
There is also a Management fee of 15.00% (rounded to the nearest $25 note) of the Payment Protect fee. This is for Harmoney to conduct fair and transparent claims assessment and processing; effective complaint and dispute settlement procedures; and appropriate supervision of claims-related services.
Both fees are paid at settlement out of the $25 loan investment.
On full loan prepayment by borrowers, lenders get rebated the Payment Protect Sales Commission and Management Fee pro-rata as per the table.
| 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.