We're fully regulated by the Financial Conduct Authority (FCA). But remember, this investment is not protected by the Financial Services Compensation Scheme (FSCS)
1stThe world's first peer-to-peer platform
14 yearsof personal loan investment expertise
£4.5 billionin personal loans lent to over 470,000 UK consumers
£280 millioninterest generated for over 60,000 active investors
Numbers as of June 2019
Understand Zopa in under 90 seconds
We bring borrowers and investors together
Start off from as little as £1,000 and we’ll split your money across a unique selection of loans to reduce risk and help you reach a return within your projected range.
Feel good knowing your investment will help people across the UK with everything from unsecured loans for home improvements to secured car finance for new wheels to get to work.
We find people in the UK that want to take out a loan for a maximum amount of £25,000. Drawing on our wealth of lending experience, we assess their risk and calculate a fixed interest rate for a period of up to five years.
Then, we match them with people like you – people who want to earn a good return while helping others achieve their goals.
Here's a breakdown of the process
- Zopa splits your investment into small chunks. These are then put in a queue to be matched with different loans.
- We’ll work out how to distribute your investment so you’re set up to match your target return.
- You’ll receive monthly repayments, including interest but minus our loan servicing fee.
- Some loans default. We factor this in when calculating target returns.
- By letting us reinvest your repayments as they come in, you can earn interest on interest.
Who you invest in
Our borrowers come in all shapes and sizes, but we run checks on every single one. Here's a snapshot of what they look like.
* average January 2018 - April 2019
Can demonstrate a good track record of repaying debt
Are current UK residents
Have at least three years of UK address history
Average age 40 years old*
Average income of £40,000*
How we manage the risks
We've been doing this for 14 years and use all of our experience to decide who we will approve for a loan.
Your investment will be spread across many different loans. This reduces your risk as no one person is lent more than 1% of your initial investment.
We know that sometimes repayments may be missed. That's why we factor this into your target returns and have an experienced Collections team based in London who help to get things back on track. The vast majority of our borrowers who miss a payment will go on to fully repay their loan.
If four months of repayments are missed on an unsecured personal loan, we default it. If this happens, you'll stop receiving your regular repayments from this particular borrower. But even after a default, a team will continue to work with them to try and make recoveries on your behalf.
With a secured car finance loan, we’ll class this as defaulted after three months of missed repayments. However, as the loan is secured, we can repossess the vehicle and then sell it in order to recover as much of your investment as possible.
Borrower risk profiles
Our borrowers have to meet high standards. We only approve about 20% of people who apply for a loan with us.†
Everyone that we do approve is categorised to assess their risk and given an interest rate personalised to them. The profiles range from A* to E. Our A* borrowers are the most reliable and E the riskiest. This process is informed by 14 years of lending data and the latest credit info from three major UK credit bureaus.
† Based on applications via ClearScore May 2018 – March 2019, representative of Zopa's borrower approval rates.
of Loan applications
of Loan applications
A* A B C D E
Applicants we view as too risky
Here's a breakdown of how we calculate annual projected returns across our risk categories. Your Zopa investment will be unique to you, containing a mix of these profiles tailored to help you reach your target return.
Source: Indicative ranges based on weighted average interest rates and projected default rates by risk profile in 2018.
Although the majority of loans are unsecured, less than 10% are secured car loans. Given their risk, we classify these under our A and B profiles.
Investment tailored to your appetite
We offer two options for investors to pick from, Zopa Core and Zopa Plus:
- Both contain A*, A, B and C borrowers
- Zopa Plus adds higher risk D and E loans into the mix
- Both Zopa Core and Zopa Plus are available as ISAs so you can enjoy your peer-to-peer returns tax free.
A*, A, B & C
A*, A, B, C, D & ETypically, D and E loans are limited to 20% of your personal mix
No fixed term
Best results over the mid to long-term, but you can choose to access your money early by selling loans you have invested in. This process depends on demand from other investors to buy your loans so can take several days. A 1% sale fee applies.
Your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS) when you invest.