About Zopa

Zopa is the world’s oldest and the EU’s largest Peer-to-peer lending platform. First founded in 2004, Zopa has lent over £1.99bn to borrowers to date.

Credit checks are performed on all loan applicants, with Zopa lending to individuals rated A* to C. Lenders invest in a basket of loans made up of a mix of credit ratings, earning more or less depending on the length of time they commit their cash to.


Pros...

  • Zopa is authorised by the Financial Conduct Authority.
  • Member of the Peer-to-Peer Finance Association.
  • Over 63,000 individuals have trusted Zopa with their investments since 2005.
  • Zopa’s Safeguard Trust protects against defaults.

Cons...

  • Your capital is at risk.
  • Zopa is not covered by the FSCS.
  • You can sell your loans to other lenders early, subject to a 1% fee.

Provision funds and insurance

Zopa offers a ‘safeguard’ facility, which comes into effect should any borrower miss 4 months or more repayments on their loan.

Since the launch of Safeguard in May 2013, bad debt risks for lenders have been eliminated, with Zopa holding over £10m in the Safeguard Trust at the time of writing. If a borrower defaults, the debt is normally sold to a debt collection agency. As with all P2P investments, however, your capital remains at risk.

Key Data

  • Amount Lent/Invested: £1.6b
  • No. UK Investors: 63k
  • Avg. Amount Invested: £6.2k
  • Expected Bad Debt Ratio: 1.01%
  • FCA Regulated?
  • Who chooses borrowers? P2P Company
  • Investment secured on Personal Loans
Invest with Zopa

Zopa Plus

  • Potential Return:

       4.7%*
  • Term:

      0 - 5 years
  • Min. investment:

       £1,000
  • Secured on:

       Personal Loans
  • Provision Fund:

       No
  • Early exit:

       Yes

*Annualised projected return (capital weighted average loan interest rate minus expected principal loss and any fees)


Zopa Core

  • Potential Return:

       3.7%*
  • Term:

      0 - 5 years
  • Min. investment:

       £10
  • Secured on:

       Personal Loans
  • Provision Fund:

       Yes
  • Early exit:

       Yes

*Annualised projected return (capital weighted average loan interest rate minus expected principal loss and any fees)


Your capital is at risk if you lend to businesses. Peer to peer lending is not protected by the Financial Services Compensation Scheme. Please read our full risk warning here.