Thoughts on Zopa

 

A few weeks ago I put a few comments about peer-to-peer lending and Zopa in particular on this blog.

I've now been using the site for nearly three months and I can make a few more general points.

1. It would appear that most of the lending activity is in the A* and A group of borrowers. This is certainly true for my lending and having tried to lend out money in the B, C and Youth markets, I suspect it's because those who have better credit rating see Zopa as less hassle and cheaper than the banks and those with less good rating are cutting back.

2. Zopa has a policy of no penalties for early repayment and I see several of my borrowers are repaying loans on an early and ad hoc basis. Looking at the psychology of this, you do wonder that if they have some spare cash, then they use it to pay off their loans rather than spent it on something pointless. After all, once it's gone it's gone and perhaps putting it back to Zopa is a good idea.

3. One guy has paid off his loan in full already. Perhaps, he thought he might need it and then something else came up. So he apid off his loan.

So I'm still liking it.

I would advise that next time you need a loan, I'd check out what Zopa will charge you and what the bank will. The choice is then up to you.

This may be a bit of a cheek, but if you are serious about Zopa, then use one of the links in this blog. It takes you to my page on the site and if you sign up from there, I will do what Zopa suggest.