Zopa personal loans

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

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Zopa

Zopa was founded in Buckinghamshire in 2004 by a team from the internet banking company Egg Banking, and at the time was one of the only peer-to-peer lending platforms. It provided a chance for UK investors to access a market of borrowers without the unnecessary need for a financial institution in the middle. In November 2016, Zopa announced that it would apply for a banking license and by May 2017 it had become fully regulated by the FCA.

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 £1,500.00 over 3 years at a rate of 9.1% p.a. (fixed) with an application fee of £0.00. Representative APR 15.5% and total payable £1,858.32 in monthly repayments of £51.62.

Promoted
Late repayments can cause you serious money problems. See our debt help guides.

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 at a glance

Zopa provides “unsecured” personal loans – meaning they’re be based on creditworthiness, rather than the use of property or other assets as collateral.

  • Loan terms from 1-5 years.
  • Loan amounts from £1,000-£25,000.
  • Competitive rates.
  • Simple online application. The whole process can be completed online with no paperwork through the post needed.
  • Soft searching. Get a personalised quote without affecting your credit score.
  • Access funds in in more than five working days. If you’re in a hurry you can pay an extra £10 for Zopa’s “Fast track” option.
  • Make overpayments at any time. This will reduce the size (rather than the term) of your ongoing payments. You could potentially pay less interest overall, as the interest is calculated on your outstanding balance.
  • No early repayment fees. Zopa can calculate your settlement figure online automatically at any time.

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”.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure 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.

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.

Compare personal loans

Table: sorted by representative APR, promoted deals first
Name Product Total Payable Monthly Repayment Representative APR Link
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.
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.
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.
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.
Representative example: Borrow £1,500.00 over 3 years at a rate of 9.1% p.a. (fixed) with an application fee of £0.00. Representative APR 15.5% and total payable £1,858.32 in monthly repayments of £51.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

Compare up to 4 providers

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.

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.

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

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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