Getting started is easy
Open an account, transfer your money, choose how you want to lend and we'll take care of the rest.
1. Open an account
It's a simple online process to open an account. Then you can transfer money in from your bank.
2. Choose your lending option
Decide whether you want more flexibility from shorter term loans, or prefer to commit your money for longer and earn a higher rate of interest.
You can update your lending preferences at any time, which then applies to any new money or re-payments that you lend after you make the change.
At Zopa, we offer two different markets for loans:
A borrower with a three year loan will make monthly repayments for 36 months. Whilst a borrower with a five year loan will make repayments over 60 months.
So if you lend the same amount, you will get a larger proportion of the loan back each month if you lend in two and three year loans, compared to four and five year loans.
This means your money is recycled faster so you can buy more new loans each month at the latest interest rates. If market interest rates change, this means your portfolio will react more quickly to these changes. Alternatively by withdrawing the repayments you access more of your money faster.
Lending to 4 & 5 year loans will earn you a higher interest rate each month, as borrowers will typically pay higher rates on longer term loans.
You can change which market your repayments are re-lent to at any time.
With peer-to-peer lending your capital is at risk, our risk statement has the details.
Choose your lending option
3. We take care of the rest
Your money goes into a queue with other lenders to be matched to borrowers.
Your money is split into chunks - microloans to be lent to different borrowers.
Each month borrowers pay back capital and interest on your loans. These repayments can be recycled in new loans or withdrawn.
Your new loans will always be at our latest rates, meaning that your loanbook rates will evolve over time.
Lending at Zopa is simple; everything happens automatically. Here's how it works...
Your money enters a queue with other lenders to be matched and lent out to approved borrowers. Once it reaches the front, it is split into micro loans of at least £10 to diversify your money.
Each month borrowers make their loan repayments, paying you back a portion of your capital plus interest. Borrowers repay on different days so money is coming into your account throughout the month.
Once you've collected enough repayments to buy a new micro loan your money will be automatically re-lent to new borrowers, so you're now starting to lend and earn money on your interest.
Each micro loan is repaid at a fixed interest rate, but your repayments will buy new micro loans at the latest market rates. This means your rates will evolve with the market as you re-lend.
4. Until you want to withdraw
You can choose when and how to access your money. You can either withdraw your monthly repayments as they are paid back by borrowers.
Or, if you want to access a lump sum, you can sell your outstanding loans to other lenders for a 1% fee.
Read more about accessing your money or watch our video below:
There are two ways to access your money in Zopa:
You can simply stop re-lending your monthly repayments and withdraw them from Zopa as they come in.
Or, if you want to access more, you can do so by selling your loans to other lenders. Simply choose the amount you want to sell, and we'll handle it for you.
To sell your loans there must be other lenders in the market, which has always been the case, and your loan must be up to date. It usually takes just a few days.
If the market rate for loans has changed since you lent your money, the loan you're selling could be at a lower rate than the buyer would get on a new loan, so you may have to pay a small fee to cover the difference.
What the press says
“It is far better than any High Street savings rate in the UK and the money can be accessed in an emergency.”The Telegraph, 14 January 2014