Harmoney personal loan

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Forums › Finance and wealth management › Harmoney personal loan

Lizard1977

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#306934 5-Sep-2023 13:18

I have a friend (honestly) who needs a personal loan, most likely unsecured. I've never gone down this road before, so I don't have any personal knowledge to offer. But a bit of googling threw up Harmoney, which claims to offer loans of up to $70k unsecured. Setting aside the interest rates (which are like credit card rates), what is Harmoney like to deal with as a lender? Anything to be concerned about? Are there better alternatives (for the record, this friend's bank doesn't offer a personal, unsecured loan product)?

Linux

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#3123837 5-Sep-2023 13:23

70k unsecured loan they must have rocks for brains and at credit card rates!! Do not go down that path

jonathan18

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#3123840 5-Sep-2023 13:37

Umm, the OP didn’t say their ‘friend’ (joking) wanted to borrow $70k - rather that’s the upper limit of Harmoney.

I’d suggest your friend may want to read through the review of Harmoney on Money Hub, which has only recently been updated) - see https://www.moneyhub.co.nz/harmoney-review.html.

Another option could be P2P, eg Lending Crowd - reviewed on Money Hub at https://www.moneyhub.co.nz/lending-crowd-review.html. Similarly, Squirel - https://www.moneyhub.co.nz/squirrel-review.html. I’ve got no experience with borrowing from either of these, but do have some money invested in both (a key benefit is one can put as little as $50 and $100 respectively in each loan).

michaelmurfy

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#3123841 5-Sep-2023 13:47

A $70k unsecured loan will be seen by many as a high risk loan. Not only will the high interest slaughter your friend, the chances of actually getting one of these loans approved is rather slim.

Depending on what it is for perhaps consider vehicle finance (if this is for a vehicle) or putting it on the home loan if they have that capability. I highly doubt a responsible lender, especially with the responsible lending code we have in NZ will lend that amount, unsecured with high interest.

Edit: I note you didn't really list the amount of the loan but said "up-to" in your example. On the first instance if your friend has good banking etiquette it'll be worth going through their bank first as often it is cheaper and comes with zero fees if you pay it off early. Many times you can actually barter with them a little on interest rates.

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jonathan18

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#3123842 5-Sep-2023 13:49

As I mentioned earlier, we actually don’t know the size of the loan the OP’s friend is seeking - rather, the OP has mentioned that is the upper limit of Harmoney’s lending. Unless we’re told how much they want to borrow (which could be way less than this amount) this is somewhat moot…

Lizard1977

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#3123847 5-Sep-2023 14:01

Yeah, it's way less than the $70k limit at Harmoney.

For the record, this kind of loan is not something I would ordinarily recommend. The high interest rates are pretty heavy. But my friend has been in the country for a couple of years, has residency, but hasn't yet acquired a significant asset (such as property) to secure a loan against. They need to help out family who are in a difficult position, but they don't have the cash readily available. They're looking for options to consider, and Harmoney was one of the first that popped up. I've also suggested contacting a financial advisor who may be able to suggest other options.

marpada

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#3123850 5-Sep-2023 14:05

Another P2P option

Harmoney started as a P2P but then decided they could have their cake and eat it.

jonathan18

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#3123853 5-Sep-2023 14:13

marpada:
Another P2P option

Harmoney started as a P2P but then decided they could have their cake and eat it.

Fair point - I did know that but it certainly wasn’t what my post originally indicated! Have amended to make this clear.

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Inphinity

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#3123859 5-Sep-2023 14:28

Lizard1977:

Yeah, it's way less than the $70k limit at Harmoney.

For the record, this kind of loan is not something I would ordinarily recommend. The high interest rates are pretty heavy. But my friend has been in the country for a couple of years, has residency, but hasn't yet acquired a significant asset (such as property) to secure a loan against. They need to help out family who are in a difficult position, but they don't have the cash readily available. They're looking for options to consider, and Harmoney was one of the first that popped up. I've also suggested contacting a financial advisor who may be able to suggest other options.

Most of t he banks offered unsecure personal loans for around 13% - 15% interest which is certainly a better option than anything nearing 20%ish. Approach whoever they do their regular banking with first imo.

wellygary

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#3123862 5-Sep-2023 14:42

Inphinity:

Most of t he banks offered unsecure personal loans for around 13% - 15% interest which is certainly a better option than anything nearing 20%ish. Approach whoever they do their regular banking with first imo.

Yip, this is big glowing letters,

You are likely to get a better deal with an organisation that has the ability to see their current financial situation,

The CCCFA will likely make an approach to a 3rd party lender for any loan over 10K a monumental difficult process if there is no asset being purchased, and nothing to secure as collateral...

guyl

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#3124176 6-Sep-2023 14:26

I have used Harmoney a few times. Small amounts. Their systems are great, and really easy to use. Once you enter in all your details, they will offer you a rate..

Everything done online, and the whole process was very fast.

I would happily use them again if the need ever arose.