Zopa Review | www.zopa.com
Address: 6th Floor, 90 Fetter Lane, London, EC4A 1EN.
Branding: Zopa. AKA: Zone of Possible Agreement.
FCA Licence: 563134.
From: Zopa Ltd.
Related: No companies.
Available: Monday to Thursday (9am/5.30pm), Friday (9am/5pm).
Bad Credit Considered: Fair-to-good score required.
Manage: Zopa login provided via www.zopa.com.
Offers: Business and personal loans.
Sums: £1000 to £25,000 (new and returning).
Terms: 12 to 60 months.
£41.96 /£1000 (12) £81.68 (24)
£316.04 /£10,000 (12) £408.08 (24)
Notes: APR at 1k is 7.9% and at 10k the rates differ as 5.9% and 3.9%. These rates rise for those seeking quicker funding. You usually get your decision in 48 hours that follows with instant funding. With Fast-Track you benefit from a same day decision and payout during their operational hours (do remember that they close at weekends). The Fast-Track fee is £57.50 that turns our sampled prices into £99.46, £139.18, £373.54 and £465.58. Qualifying applicants must be aged at least 20 and be earning £12,000 each year. If you are seeking a business loan then you’ll pay higher rates of interest. Sole traders must have 2 years of trading history and the same minimum age is set.
– Amounts: New as well as returning borrowers can access up to £25k.
– Experience: Formed back in 2004 and launched to the general public in 2005 and so they have notched up more than 10 years experience. They were notably the world’s first peer-to-peer lending service. This British brand did expand overseas to Italy, Japan and the USA, but they later closed or spun off these companies.
– Invest: The total lender pool sits at 59,000 (with 51,000 currently being active). You can freely join up and see a return as high as 5% (on 4 and 5 year terms). There has been added incentive to invest since they rolled out the Safeguard protection fund back in 2013. The purpose of this is to support you should the borrower default. To be honest, they are pretty picky with who they accept and their historic bad debt is just 0.6%. There is no limit to the funds that you can pour in. Profits are however squeezed tight, since this company is involved in a price war with the banks. You also have to factor in fees as the lender. Just to add that the average loan accessed through the platform is £7500.
– Niche: This was the first player to bring the P2P concept to the financial world, taking inspiration you’d assume from Betfair in the gambling space. P2P loans are designed to cut out the banks and reward those that lend through their platform. Since 2005 they have issued over £1.1 billion that has been fed across 110,000 borrowers. Many similar companies have arrived over the years. One of their key competitors is RateSetter and the Funding Circle holds a similar level of popularity, although they strictly offer business loans.
– Pricing: Zopa loans have always been competitively priced. They do have a habit of changing their rates on a frequent basis. As it stands, the incredible value from them can be unlocked in smaller loan figures. For instance, at £1000 they offer just 7.9% APR that is the 2nd lowest rate that we have seen (behind First Direct’s 7.5%). All fees are now factored in with their headlined APRs with the exception of Fast-Track. When you do add this, they still compare incredibly well.
– Profile: One of Britain’s premier web start-ups. Loved by the media and by those that get involved on the platform. They have tended to stop quoting their membership base over the years, but on last count this was headed at 700,000. The actual number of borrowers is however 110,000. This is low when you consider that RateSetter has 152,000 and they only launched in 2010. It is surprising that there aren’t more people using this original service since it does boast the cheapest P2P rates and they were first to market.