Zopa is a P2P money lending service that allows lenders and borrowers to deal directly with one another, cutting out the banks who act as middlemen.
Zopa offers peer-to-peer loans with low rates, flexible terms, and no early repayment fees. Zopa works in the following way: the company first categorizes borrower credit grades with an A*, A, B, C or Y rating; then lenders make offers that vary by money amount and time period for persons with a certain credit grade; and borrowers can then agree the aggregate offered rate.
Zopa was founded in Buckinghamshire, Uk in 2004 & it was launched in the UK in March 2005. The company has it's headquarter in London, London, UK.
Zopa grew steadily in the years prior to the financial crisis of 2007–2008. It navigated the period with no losses to investors' capital and only a small dip in returns during 2008.
Zopa mitigates risk for lenders by enforcing monthly direct debit repayment, making borrowers sign a legal contract, and allowing lenders to lend small chunks of money to individual borrowers (i.e. someone lending Ã‚Â£1000 would have their money spread across say 100 borrowers).
Zopa has been-
• featured in the Sunday Times Tech Track 100
• chosen for the Tech City Future Fifty as one of the UK’s most disruptive tech companies
• named by MoneySuperMarket as 2016’s Best Personal Loan Provider
• voted Most Trusted Personal Loan Provider in the Moneywise Customer Awards for the past six years in a row