Zopa is the marketplace for Social Lending. Lenders and borrowers are put together under the ... More
Zopa is the marketplace for Social Lending. Lenders and borrowers are put together under the administration of Zopa and sidestep the banks and their associated high fees and poor rates.
Lending and borrowing is pretty simple when it comes down to it: somebody lends and somebody else borrows. We’ve made a few small tweaks to this time-honoured method, to ensure everything is safe, secure and legal.
Last updated 8 Sep 2011
Published 8 Sep 2011
How many times have you thought how great it would be if you could get the same interest rate on your savings as you pay for your personal loan? Quite a few I imagine but guess what? Now you can.
Zopa.com is a social lending website that is rapidly muscling in on the market share of what used to be the territory of the mainstream banks. What’s more it won this year’s Moneywise award for the most trusted personal loan provider. Now with all this talk of lending how can it help my savings you may ask? Well, read on.
For every lender there is a provider and in the case of Zopa that can be anyone who has spare cash available and who wants a better return on it than they would get by simply putting it on deposit. The great benefit of Zopa it seems is that everyone’s a winner. Borrowers can get money at lower rates than the banks offer and investors can get greater returns compared to savings accounts and other investment products.
This is no sub-prime or doorstep shark operation by any stretch of the imagination. If you’re investing money in Zopa then it only goes to creditworthy borrowers who have been identity checked, credit checked and subjected to a formal loan application and sanction. The risk of bad debts is further negated by the fact that your money is spread across a number of borrowers and not given to one case. For instance...