Zopa personal loans review

Zopa is a peer-to-peer, online personal finance company – one of the first websites to directly bring together borrowers and savers, cutting out bankers from the lending process.

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Zopa
80% of Zopa customers in our 2020 customer satisfaction survey would recommend the brand to a friend.
Loan funding usually takes five working days.
Zopa Personal Loan

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.

What is Zopa?

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.

What is “peer-to-peer” lending?

“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 based on creditworthiness, rather than the use of property or other assets as collateral. Its rates differ according to the applicant – so to get those competitive advertised APRs you’ll need excellent credit.

Loan typeUnsecured Personal Loan
Loan amounts£1,000.00 to £25,000.00
Loan terms1 Year to 5 Years
Loan rate typeFixed
Product feeVaries
Same day funding available
Instant decisions in most cases
Soft-search facility available
Joint applications
Overpay without penalty
Concurrent loans allowed
Topping-up pays off existing loan and initiates a new loan
Repayment methodsDirect Debit

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
Name Product Total Payable Monthly Repayment Representative APR Link
Hitachi Personal Finance Hitachi Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.2% p.a. (fixed). Representative APR 3.2% and total payable £10,493.64 in monthly repayments of £291.49.
NatWest Existing Customer Personal Loan (specific eligibility criteria apply)
Go to site
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Post Office Money® Personal Loan
Check eligibility
View details
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Royal Bank of Scotland Existing Customer Personal Loan (specific eligibility criteria apply)
Go to site
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
AA Member Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.0% p.a. (fixed). Representative APR 3.0% and total payable £10,462.68 in monthly repayments of £290.63.
Zopa Personal Loan
Check eligibility
View details
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.
Lending Works Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.8% p.a. (fixed) with an application fee of £0.00. Representative APR 10.0% and total payable £11,543.40 in monthly repayments of £320.65.
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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.”

Zopa customer in Finder's 2020 survey

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.

Pros and cons of Zopa personal loans

Pros

  • Loans available from £1,000 up to £25,000
  • Fixed rate of interest means your monthly payments won’t change
  • Zero fees for making early repayments
  • 4.5 out of 5 stars and highly commended in our 2020 Finder Customer Satisfaction Awards
  • Cons

    • Funds are not instant and can take five days to be processed after submitting an application
    • Joint applications are unavailable
    • Loans are unsecured

    Our verdict

    If you’re interested in peer to peer lending, then you might want to check out what Zopa can offer.

    Loans are capped at £25,000 with fixed rates for up to five years. But you’ll need to check the interest rate offered to you as it might differ from what originally caught your eye.

    If you decide to pay early, you won’t be penalised with early payment fees either.

    Zopa received 4.5 out of 5 stars and was also highly commended in our 2020 Finder Customer Satisfaction Awards.

    Just be sure to compare deals to find the best loan to suit you.

    Frequently asked questions

    Personal loans ratings

    ★★★★★ — Excellent

    ★★★★★ — Good

    ★★★★★ — Average

    ★★★★★ — Subpar

    ★★★★★ — Poor

    Our customer satisfaction scores (“Customers say”) are based on a survey of 750 customers carried out in December 2019.

    We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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