Harmoney, New Zealand's first licenced peer-to-peer lender, is now open for business.
"Peer to peer (P2P) lending is now live in New Zealand," the company's website says.
As intermediaries, online P2P lending platform operators will match lenders with borrowers seeking loans for personal, charitable, or small business purposes and receive fees for doing so.
Harmoney's website is promoting debt consolidation, car loans, holiday loans and home improvement loans with interest rates for borrowers, priced via a risk gradient, ranging from 9.99% to 39.99%.
Harmoney has said investors' net returns, net of defaults and Harmoney's fees, will range from 10% through to 24%.
Harmoney will charge a minimum loan origination fee of $300. There's also a $15 dishonour fee if a borrower’s repayment is dishonoured, a $30 per month overdue fee if a payment is not made in full and the account goes into arrears, which rises to $75 per month if the account has been overdue for over 60 days.
Harmoney will break every borrower's loan into $25 "notes", spreading their loan around different investors to help manage risk. Investors will be charged a service fee of 1.25% of the principal and interest payments collected on each note.
Borrowers can choose a loan term of between three and five years. Investors will receive monthly repayments, as they are made by borrowers, for the duration of a loan.
The Financial Markets Authority granted Harmoney a P2P lending licence in July. The passing of the Financial Markets Conduct Act last year enabled the development of P2P lending in New Zealand. See all our stories on P2P lending here, and a video interview with Harmoney's CEO and founder Neil Roberts here.
Meanwhile, in Australia borrowers can now access their credit scores free through a new website backed by peer-to-peer lender SocietyOne.