Zopa Loans
From Zopa
Summary
Good:
There are no banks involved and the rates can be very low as you are borrowing from other people
Bad:
Very large arrangement fee added onto your loan
Verdict:
The oldest peer to peer lender - very trusted but have quite a few extra fees including a large arrangement fee
Zopa are a peer to peer lender, this means you are borrowing off other people and not banks. It's essentially very simple, some customers need a loan and some customers want to invest by lending money. Zopa bring these people together and offer a safe place for people to borrow and lend. You can borrow between £1,000 and £15,000 and if you want to pay your loan off early, it won't cost you any more.
To apply, simply visit their website and sign up. It is at this stage that your information is reviewed by the underwriters and they will put you into one of their lending piers (various levels depending on your credit score with them). The pier you are put on will affect the APR that you are offered. You then create a listing to explain what sort of loan you are looking for, once the offer process is complete (7-10 days), you'll have a list of people who have given you offers, which you can accept or reject. You can only accept if your loan is 100% funded.
The way that Zopa operates does mean that it can take a little longer to obtain the loan than if you went down the mainstream channel of banks, or other lenders. If you aren't in a massive rush and you pass their online identification, it can be a really interesting option. Don't let the high arrangement fee put you off as you will make this back through the cheaper APR on offer.
Please note: the calculations displayed above are for illustrative purposes only. Zopas' rates change on a daily basis. The time and date when this was last updated is shown below the calculations.
How much will it cost to repay a Zopa Loans?
15000
1000
60
36
8.2
100
6
months
2000
36
Loan Calculator (Representative 8.2%APR)
Loan Amount £
Loan Term months
Monthly Repayment
£
Total Repayment
£
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Customer Reviews (20)
"Maybe a bit of a scam"
Muz Iqbal , Manchester
I have an above average credit score, no loans, no defaults, one credit card which is always payed off on time...wanted to take a loan for a car purchase, declined...i subsequently then got copies of my credit file, from the major credit reference agencies, and also credit agency checks from checkmy file etc...all show my credit to be very good. I think this is a bit of a scam, and have now heard of all the declines people with good credit scores are getting. my bad for not researching this company first. My advice, not worth the hassle.
I have an above average credit score, no loans, no defaults, one credit card which is always payed off on time...wanted to take a loan for a car purchase, declined...i subsequently then got copies of my credit file, from the major credit reference agencies, and also credit agency checks from checkmy file etc...all show my credit to be very good. I think this is a bit of a scam, and have now heard of all the declines people with good credit scores are getting. my bad for not researching this company first. My advice, not worth the hassle.
"Declined!"
Rob , Tavistock
I have been in the same job since February 2004 (NHS) as a registered Nurse. I earn £34k a year and my bank account is always in credit. I pay my credit cards off in full each month and I have never defaulted on any credit arrangement in the past. My job is secure and my partner earns over £40k per year. Despite this, I have been turned down for a £5000 loan to replace my car that was written off by a drink driver last week and I am incensed that no concrete explanation has been provided.
I have been in the same job since February 2004 (NHS) as a registered Nurse. I earn £34k a year and my bank account is always in credit. I pay my credit cards off in full each month and I have never defaulted on any credit arrangement in the past. My job is secure and my partner earns over £40k per year. Despite this, I have been turned down for a £5000 loan to replace my car that was written off by a drink driver last week and I am incensed that no concrete explanation has been provided.
"Excellent service"
Mike , Wrexham
I am both borrower and lender on Zopa. Taking £8.5k loan took a few days, got a phone call from Zopa as I was in the middle of buying house and they wanted to know details. After sending some documents loan was quickly approved and money was on my account. I will definitely never use banks again to get any loan. As I borrowed more than I actually needed, I put the excess on Zopa as a lender and that also works great. About bad reviews - I realise it has to be frustrating, being refused, but as a lender I'm glad, that they are so careful with my money.
I am both borrower and lender on Zopa. Taking £8.5k loan took a few days, got a phone call from Zopa as I was in the middle of buying house and they wanted to know details. After sending some documents loan was quickly approved and money was on my account. I will definitely never use banks again to get any loan. As I borrowed more than I actually needed, I put the excess on Zopa as a lender and that also works great. About bad reviews - I realise it has to be frustrating, being refused, but as a lender I'm glad, that they are so careful with my money.
"Disappointed & confused"
Cherry , Barry
My application failed but I genuinely have no idea why- it's like a lottery! The sample reasons they've given are: I have other unsecured debt- I don't owe anything I can't afford it- I can as I live rent free Not on the electoral register long enough- I have been for yeeeears Not kept up with payments- I've never missed a payment ever And I asked for an exact reason and they wont outline it so disappointed and confused.
My application failed but I genuinely have no idea why- it's like a lottery! The sample reasons they've given are: I have other unsecured debt- I don't owe anything I can't afford it- I can as I live rent free Not on the electoral register long enough- I have been for yeeeears Not kept up with payments- I've never missed a payment ever And I asked for an exact reason and they wont outline it so disappointed and confused.
"INSULTED"
Steve Martin , Sheffield
I applied for a loan recently as others have posted to consolidate a smallish credit card and get a new motorbike, i have never been refused any sort of credit in my life and my current loan is about up with no missed or late payments, i purchased a credit report to check why i got refused and cannot see any thing wrong at all, my score is 800 and through household bills etc 941, if i had been granted this i would be at this time paying out less monthly by about £60 , they did not bother to phone to ask any questions it just came by email not approved and no reason why, i feel insulted by their actions and think this is not very professional or curious at all, i thought i would give these a try rather than my current lender , and how wrong was i, they leave you feeling insulted and stressed as to reasons i cannot explain, i would not recommend anyone going to this company, i am homeowner in last 4 years of mortgage no defaults ccjs nothing, avoid these people,
I applied for a loan recently as others have posted to consolidate a smallish credit card and get a new motorbike, i have never been refused any sort of credit in my life and my current loan is about up with no missed or late payments, i purchased a credit report to check why i got refused and cannot see any thing wrong at all, my score is 800 and through household bills etc 941, if i had been granted this i would be at this time paying out less monthly by about £60 , they did not bother to phone to ask any questions it just came by email not approved and no reason why, i feel insulted by their actions and think this is not very professional or curious at all, i thought i would give these a try rather than my current lender , and how wrong was i, they leave you feeling insulted and stressed as to reasons i cannot explain, i would not recommend anyone going to this company, i am homeowner in last 4 years of mortgage no defaults ccjs nothing, avoid these people,
"Avoid at all costs"
Ally , Glasgow
Echo all recent reviews, rejected when credit score is excellent (according to Santander who approved loan in 10 mins). Not worth the hassle and rejection coulld affect your credit score. Will advise anyone I talk to to avoid Zopa,,,
Echo all recent reviews, rejected when credit score is excellent (according to Santander who approved loan in 10 mins). Not worth the hassle and rejection coulld affect your credit score. Will advise anyone I talk to to avoid Zopa,,,
"Rubbish"
Paul , Stockport
No stars is a better option - you have to be a billionaire to get a bleedin small loan from these idiots and as for waiting a few months and re-applying - don't bother. Steady job, no defaults, outright homeowner with no mortgage - forget it!
No stars is a better option - you have to be a billionaire to get a bleedin small loan from these idiots and as for waiting a few months and re-applying - don't bother. Steady job, no defaults, outright homeowner with no mortgage - forget it!
"Confused!"
Dee , Essex
I applied for a small loan purely to consolidate my existing debts (which I have been paying by direct debit for years never once missing a payment). I applied to Zopa due to the excellent interest rates and much smaller monthly payments but was turned down and told to reapply when my circumstances change. I have been in my current job for 4 years and have always been on time paying my bills. Suffice to say I will not be reapplying in the near future because I have no idea what my circumstances are supposed to be in order for them to accept.
I applied for a small loan purely to consolidate my existing debts (which I have been paying by direct debit for years never once missing a payment). I applied to Zopa due to the excellent interest rates and much smaller monthly payments but was turned down and told to reapply when my circumstances change. I have been in my current job for 4 years and have always been on time paying my bills. Suffice to say I will not be reapplying in the near future because I have no idea what my circumstances are supposed to be in order for them to accept.
"NOT GOOD"
Patrick , Leeds
Totally Gob smacked and I feel Insulted I have a good credit rating I own my house and have just six months left on Mortgage. We thought we would have a change from are usual lender has we had just had a loan end a while back. I have never missed a payment on anything and I am a self employed builder who has been establish for 18 years I will be warning people not to try to go anywhere near zopa them my Star rating is 0
Totally Gob smacked and I feel Insulted I have a good credit rating I own my house and have just six months left on Mortgage. We thought we would have a change from are usual lender has we had just had a loan end a while back. I have never missed a payment on anything and I am a self employed builder who has been establish for 18 years I will be warning people not to try to go anywhere near zopa them my Star rating is 0
"Not good!"
Dsincley , Airdrie
Applied for a small loan, decent paid employment, good credit history/score, and was refused, with no specific reason given, then paid money to check my credit rating, which was good and offered no reason as to why I was turned down. Yes good rates were offered but god knows how they decide who they will lend to.
Applied for a small loan, decent paid employment, good credit history/score, and was refused, with no specific reason given, then paid money to check my credit rating, which was good and offered no reason as to why I was turned down. Yes good rates were offered but god knows how they decide who they will lend to.
"Waste of time"
James , London
Turned down with a good credit score - no defaults, no max limits on existing cards. Not a high earner - but a steady job paying over 30K a year. So who do they exactly lend to?
Turned down with a good credit score - no defaults, no max limits on existing cards. Not a high earner - but a steady job paying over 30K a year. So who do they exactly lend to?
"Bad communication on rejections"
Chase , Birmingham
Applied due to their good (apparent) rates and ability to pay more back without fees, only to be turned down with no reasoning. I checked my credit rating on Experian which showed 999 - literally the highest it goes to. I own a house (mortgage) with over 25% ownership. I am in a stable job (over 4 years employment here) and pull in around 2k a month. Credit cards have no more than a couple of hundred on them that I could pay off instantly if they told me it was a problem.... Now been told to "reapply if your circumstances change" - WHAT circumstances? I only wanted £4000 for a short term. Lack of communication means I'll go elsewhere now.
Applied due to their good (apparent) rates and ability to pay more back without fees, only to be turned down with no reasoning. I checked my credit rating on Experian which showed 999 - literally the highest it goes to. I own a house (mortgage) with over 25% ownership. I am in a stable job (over 4 years employment here) and pull in around 2k a month. Credit cards have no more than a couple of hundred on them that I could pay off instantly if they told me it was a problem.... Now been told to "reapply if your circumstances change" - WHAT circumstances? I only wanted £4000 for a short term. Lack of communication means I'll go elsewhere now.
"Not good"
Jonathon , Stockport
Having had an application for a personal loan accepted by another organisation albeit at a higher rate of interest I decided to give Zopa a try to compare. I thought that I had met the criteria easily having an excellent credit history, plenty of equity etc.Unfortunately I received an email to the contrary,without an explanation.I was also told to re-apply when my circumstances had changed................................completely baffled!!
Having had an application for a personal loan accepted by another organisation albeit at a higher rate of interest I decided to give Zopa a try to compare. I thought that I had met the criteria easily having an excellent credit history, plenty of equity etc.Unfortunately I received an email to the contrary,without an explanation.I was also told to re-apply when my circumstances had changed................................completely baffled!!
"good rates"
Eddy
i am glad that i had a loan
i am glad that i had a loan
"Better way of doing things"
Catriona
As long as you are not in a major rush to get your loan, Zopa is definitely a better way of doing things. It can take around two weeks before you find someone willing to lend to you but the rates are always so low that it makes it worth it.
As long as you are not in a major rush to get your loan, Zopa is definitely a better way of doing things. It can take around two weeks before you find someone willing to lend to you but the rates are always so low that it makes it worth it.
"Really low rates"
Catriona
When I was searching around with Zopa for a loan, I couldn't believe the rates that some of the lenders were offering! I was playing with their calculator for a while trying to find a loan with a suitable rate and I came across a rate of 3.5% over 36 months... I have never seen that anywhere. They really are a different type of lender.
When I was searching around with Zopa for a loan, I couldn't believe the rates that some of the lenders were offering! I was playing with their calculator for a while trying to find a loan with a suitable rate and I came across a rate of 3.5% over 36 months... I have never seen that anywhere. They really are a different type of lender.
"My not-so-great experience"
Steve , Boston
I applied for a loan with Zopa and the process was clear and efficient. My credit rating was positive and I made it clear I had considerable positive equity. I was told that it was likely I would be given a loan and told to wait a few days. Eventually, I heard back and I had been turned down! With no other explanation, I was told to re-apply when my circumstances had changed.
I applied for a loan with Zopa and the process was clear and efficient. My credit rating was positive and I made it clear I had considerable positive equity. I was told that it was likely I would be given a loan and told to wait a few days. Eventually, I heard back and I had been turned down! With no other explanation, I was told to re-apply when my circumstances had changed.
"Getting my loan was fun!"
Michael , Kettering
Actually getting the loan was, believe it or not, quite fun. Once I had been credit-checked and given my credit score (can you believe they actually gave me the score - do any other banks do this?) they allocated me to the B market. I ended up with a loan of £5,000 which I was very happy with
Actually getting the loan was, believe it or not, quite fun. Once I had been credit-checked and given my credit score (can you believe they actually gave me the score - do any other banks do this?) they allocated me to the B market. I ended up with a loan of £5,000 which I was very happy with
"Zopa Repayment Protection"
lloyd
I'm so glad then when I took out my loan with Zopa, I opted for their Zopa Repayment Protection because 14 months after I took out my loan, I lost my job. Definitely worth considering as you never know what's around the corner.
I'm so glad then when I took out my loan with Zopa, I opted for their Zopa Repayment Protection because 14 months after I took out my loan, I lost my job. Definitely worth considering as you never know what's around the corner.
"Easy to make early repayments"
Lucy
When I took out a loan with a lender from Zopa, I was self-employed. I was expecting to have to take the loan out over a year but after I had received some substantial amounts of money, I had no problems at all repaying all of my loan early.
When I took out a loan with a lender from Zopa, I was self-employed. I was expecting to have to take the loan out over a year but after I had received some substantial amounts of money, I had no problems at all repaying all of my loan early.
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Loan Details
APR
6% - 15.4%
Representative APR
8.2%
Loan Amount
£1,000 - £15,000
Repayment Period
Minimum Term 3 years
Loans £1,000 - £15,000 up to 5 years
You can have the loan for either 3 OR 5 years
Loans £1,000 - £15,000 up to 5 years
You can have the loan for either 3 OR 5 years
Repayment Method
Transferred into your bank account
Speed to Payout
5-7 working days
24 hours - CHAPS fee of £57. 50
24 hours - CHAPS fee of £57. 50
Arrangement Fee
130
Payment Holidays
None Available
Income Protection Available
No
Average Customer Review
Acceptance Criteria
- You must have a bank account with direct debit facilities
- You must have been a UK resident for 3 years or longer
- You may not need to provide any documents, they will tell you when they receive your application
- You must be 26 years of age or over
- You must have an income that enables you to afford the loan you are looking for
- You must have a good credit history
Charges
Late Payment Fees
- If you miss payments, their Debt Collection agency may become involved to work out another means of payment
Early Settlement Fees
- None – the earlier you repay your loan, the more money you save
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