Zopa is a peer-to-peer lender that matches borrowers directly with investors and has been in operation for over a decade. They offers borrowers better interest rates while investors see a better return. Zopa offer unsecured loans for any reason, including car finance, home improvements and debt consolidation.
If you want a fast, simple way to access borrowing direct from investors with attractive interest rates, peer-to-peer borrowing with Zopa could be a good option.
How peer-to-peer lending works
Zopa’s peer-to-peer lending works by signing up investors and then connecting them with borrowers directly. They charge borrowers a fee once their application has been approved which is added to the total capital of the loan. Investors in turn pay a 1% fee if they decide to sell on their loans so they can withdraw their money early.
This model of direct lending means there is no middle-man taking a cut, which can result in cheaper borrowing for people needing loans and better returns for investors.
Advantages of Zopa loans
Zopa offer a number of benefits to their borrowers, including:
- Borrow from £1,000 to £25,000
- Repay over 1 to 5 years
- Lower interest rates than banks (subject to circumstance)
- Check your likely interest rates without affect your credit score
- Simple online application process
- No early repayment fees or no hidden charges
Compare Zopa loans
Zopa can help you get a better deal on your borrowing, but it is also worth checking their rates against other leading lenders. Because interest rates depend on a wide number of factors, peer-to-peer borrowing may not be the cheapest option for you.
Our loan comparison tool (see top of page) allows you to quickly see top deals from across the market so you can get a better sense of which products and loan providers are likely to offer the best deal for you. This means you can be confident you are getting the very best value on your loan.