Zopa was founded in Buckinghamshire in 2004 by a team from the digital banking company Egg Banking, and at the time was one of the only peer-to-peer lending platforms. It gave a chance for UK investors to access a market of borrowers without the unnecessary need for a financial institution like a bank in the middle. In November 2016, Zopa announced that it would apply for a banking licence and by May 2017 it had become fully regulated by the Financial Conduct Authority.
Zopa peer-to-peer personal loans
Borrow from £1,000 to £25,000
Rates often lower than the banks
Checking your personalised rate won't affect your credit score
Representative example: Borrow £10,000.00 over 5 years at a rate of 8.8% p.a. (fixed) with an application fee of £240.00. Representative APR 9.9% and total payable £12,602.87 in monthly repayments of £210.05.
“Peer-to-peer” (P2P) lending uses the internet to bring together people who wish to save/invest money, with people who need to borrow money. With less overheads than your average high street bank, it is often able to offer very competitive rates.
Key features of Zopa personal loans
Zopa provides “unsecured” personal loans – meaning they’re be based on creditworthiness, rather than the use of property or other assets as collateral. Its rates to the applicant – so to get those competitive advertised APRs you’ll need excellent credit.
Unsecured Personal Loan
£1,000.00 to £25,000.00
1 Year to 5 Years
Loan rate type
Same day funding available
Instant decisions in most cases
Soft-search facility available
Overpay without penalty
Concurrent loans allowed
Topping-up pays off existing loan and initiates a new loan
All interest rates are fixed for the duration of your repayment period, however the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised Representative APR.
How does Zopa compare?
Table: sorted by representative APR, promoted deals first
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
What is APR?
The Annual Percentage Rate (APR) is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan. The AA doesn’t charge fees as standard, so its APR is the same as its interest rate.
All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.
Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.
Am I eligible for a Zopa personal loan?
When applying for a personal loan with Zopa, factors such as your credit history, income and the amount you apply for will be considered. You shouldn’t apply unless you’re certain you can meet the repayment terms, and you meet the following criteria:
Aged 20 or above.
Able to confirm your identity (Passport/ Drivers licence).
UK resident with 3 years of address history.
Employed, self-employed or retired with a pension.
Annual income of £12,000 or above (before tax).
Visible credit history with a good track record of repaying debt.
It’s so easy to apply and the app lets you track all aspects of your account and loan.”
How do I apply?
If you’ve decided that a Zopa personal loan is right for you, then you can apply online by following the loans application process.
Frequently asked questions
It’s not possible to change your contractual monthly repayment amount. However you can reduce the size of your monthly repayments by making extra repayments towards your loan. The term of your loan will stay the same and there’s no fee for extra repayments.
The whole application process can be completed online with no paperwork through the post needed. Once you’ve applied for a Zopa loan, you can expect a decision within two working days and funds within five working days. If you’re in a hurry, you can pay an extra £10 for Zopa’s “Fast track” option.
A soft search allows you to receive as many quotes as you like without leaving a footprint on your credit file. This stops you from applying for the wrong products and harming your credit score, which would make it harder to be accepted for the right loan in the future. You can then choose which individual quote is right for you and you can proceed with that application.
Yes. The repayment day is automatically set to 30 days after your loan is approved with Zopa, but you can change it to a day that is more convenient for you. To do this, login and click “view details” then “change repayment day”.
Yes. Overpayments will reduce the size (rather than the term) of your ongoing payments, and you could potentially pay less interest overall, as the interest is calculated on your outstanding balance. There are no early repayment fees and Zopa can calculate your settlement figure online automatically at any time.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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