Zopa's low rate loans
Zopa offers low rate loans to borrowers with no hidden charges. The interest rate is fixed throughout the time you to take to repay your loan.
Zopa loans are competitively priced compared to other loan providers so you can rest assured you're getting the best deal.
You can use our handy loan calculator to quickly see what rates we are offering today.Check Zopa's loan rates
“The whole idea of peer-to-peer lending was new to me and the borrowing rate of under 10% seemed too good to be true but to my amazement my application went through within 3 days.”— Andrew (Glasgow)
No hidden fees or charges
There are no hidden charges with Zopa. Applying for a loan costs nothing and there are no upfront fees to pay.
A fee is included as part of the APR we offer in your loan quote. This is added to the total amount you borrow so when you apply you can clearly see the total cost of your loan.
The fee is repaid over the course of the loan as part of your monthly repayments so there is no upfront payment.
The purpose of the fee is partly to protect people lending money through Zopa from the small risk that some borrowers might not repay their loan. Because Zopa loans are funded by people using the peer-to-peer lending model Zopa maintains a Safeguard fund to protect its lenders against borrowers who default (fail to repay their loans).
Additionally a small proportion of the fee is an admin fee that is paid to Zopa.
The total amount of fee that you pay depends on your credit score and the length of your loan. Zopa uses past figures for defaults to help calculate this fairly.
“Zopa is the pioneer of peer-to-peer lending, which uses the internet to cut out the banks entirely. It matches savers with individuals who want to borrow, leaving out the bank and offering better rates all round.”— The Guardian
How to apply
- Check the rates
- Get a quote
- Accept the quote and apply online
- Decisions within 48 hours (Mon to Fri)
- Money transferred on approval
What is APR
Annual Percentage Rate (APR) is a measure of how much it costs to borrow money.
APR takes into account any interest and charges that are payable on a loan spread over the period you borrow the money.
It shows you the total cost of a loan. As APR is used by all loan providers it allows you to compare the cost of different loans.
How APR works
The APR tells you how much your loan will cost over the course of a year, as a proportion of the amount you have borrowed.
The interest you pay on a Zopa loan is based on the outstanding balance of your loan at any time. So, as you pay off the loan the amount of interest you pay decreases.
We calculate interest daily, but you make loan repayments monthly. Since there is no charge for repaying your Zopa loan early you will pay less interest if you make a lump sum payment.