How Zopa minimises risk

Consistent, prudent risk management

Introduction to risk

Zopa has an unrivalled track record of performance in the personal loans asset class. We minimise our investors’ risk in three ways: a prudent credit risk policy, diversification and an effective recoveries policy.

Zopa investments fund personal loans

We only invest your money in personal loans. It’s a type of investment that we have over 13 years’ experience in, and we use the results that we’ve achieved in the past to inform our lending policies.

When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Our risk statement has all the details.

We put your eggs in many baskets

When you invest through Zopa, you don’t lend all your money to one person. It’s lent out in chunks, starting at £10. This means that if you invest £1,000, no one person would have more than 1% of your overall investment.

Learn more about how your money is matched

Managing missed payments

We always try to help our borrowers get back on track should they miss a payment. If they reach 4 months' worth of missed repayments, their loan is classed as a default and we begin our recoveries process.

After 4 months of missed payments, we would count the default as a capital loss (some of your original investment would be lost), and this amount would be deducted from your Zopa Total. We’ll still work to make recoveries on these loans, and anything we do recover will be added to your Zopa Total.

Total accountability

We've been operating since 2005.

We firmly believe in transparency in order to be held accountable to our customers and regulators. Our operational risk mitigation policy is available to everyone here.

If Zopa were to go out of business, we have planned to use loan servicing fees to cover the ongoing costs of managing our loan book.

Zopa Limited is authorised and regulated by the Financial Conduct Authority (firm registration number 718925).

Operational risk mitigation policy

We're here to help

Since 2005, more than 76,000 investors and institutions have lent over £3.70bn with us.

Monday to Thursday (8am to 8pm), and Friday (8am to 5pm).


Telephone: 020 7291 8331

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