How lending works
At Zopa you lend directly to borrowers to earn great returns and grow your savings.
1. Lend directly to borrowers
Decide how much you want to lend, you can start with as little as £10 and there’s no maximum.
You lend your money in small chunks to different borrowers. We group borrowers into longer (4-5 years) and shorter (2-3 years) loan terms. You choose which to lend to.
- Over 20 years old
- UK residents for 3 years
- Earning at least £12,000 a year (typically £30-40k), with a solid credit history.
2. Grow your savings
You’ll get monthly repayments from borrowers. These are made up of interest and capital, but without any tax deducted. You’re responsible for paying tax on the gross income you receive. Your repayments can be re-lent automatically into new loans to maximise your earnings and deliver the latest return advertised. This means your interest is earning interest too.
Not too taxing
Zopa provides an annual statement to make it simple to declare your earnings to the HMRC for tax purposes. The amount of income tax payable is dependent on your individual circumstances and may be subject to change in the future.
3. Access your money
You can withdraw your money as it is repaid each month, as income. This means Zopa is great if you’re looking to supplement a pension.
Should you need to withdraw a lump sum or all of your money, before it’s paid back by borrowers, then you can use our early access feature for a 1% fee.
You can access your money at any time so long as there is another lender to give your loan a new home. This means there is of course a chance you may not be able to access your money when you want to.
Early access feature
This is a speedy but not immediate service, as it isn’t like an instant access bank account.
Quick links to more information
To date, we've helped lend £584m, earning our lenders £34m in interest