Customer rating
★★★★★
★★★★★
Satisfaction survey
74% of Zopa customers in our 2021 customer satisfaction survey would recommend the brand to a friend.
Loan funding usually takes five working days.
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.
What's in this review?
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 type | Unsecured Personal Loan |
|---|---|
| Loan amounts | £1,000.00 to £25,000.00 |
| Loan terms | 1 Year to 5 Years |
| Loan rate type | Fixed |
| Product fee | Varies |
| 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 methods | Direct 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
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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.
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 in just a few minutes. You can check your eligibility beforehand with no impact on your credit score.
Zopa customer reviews
In our independent 2020 customer satisfaction awards, Zopa won the Highly Commended award, with 4.5 out of 5 stars and 80% of users saying they would recommend the service.
Here is some of the feedback we got from Zopa customers:
“Amazing rate. Can pay off early. Easy to arrange.”
“You get a quick response when applying for a loan. The website is easy to use and more importantly I got a good rate on my loan.”
Online reviews for Zopa:
Zopa’s got good reviews across the board for both its service and its app (updated 10 March 2021):
| Trustpilot | Google Play | Apple App Store |
|---|---|---|
|
★★★★★ 4.8 out of 5 |
★★★★★ 4.7 out of 5 |
★★★★★ 4.9 out of 5 |
Customers love the company’s great levels of service and good interest rates, but some complain about having to wait longer than expected to find out whether they’ve been approved and to receive the money into their accounts.
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 751 customers carried out in December 2020.
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.
More guides on Finder
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Zopa loan calculator
Considering a Zopa personal loan? Use our calculator to see out how much you’ll pay back each month and find out how Zopa’s loans hold up against the competition.