Zopa, which is the brainchild of the founders of the online bank Egg, has recently launched its new loan exchange service in the UK. In short, Zopa, which stands for Zone Of Possible Agreement, acts as an exchange where credit worthy borrowers can be matched with willing lenders. All borrowers are credit-checked before joining the Zopa service and only the top 40 percent of borrowers will be accepted as members categorised as either type A or type B. Zopa allows borrowers to borrow up to £15,000 and automatically matches them with lenders who have previously agreed to lend to borrowers in that category. Lenders are allowed to lend up to £25,000, but will never lend more than £200 to any one individual greatly reducing the risk of bad debt. The Zopa service is authorised by the Financial Services Authority and has been granted a credit licence under the Office of Fair Trading.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.