Zopa

Zopa, the brainchild of the founders of the online bank Egg, acts as a marketplace where credit worthy borrowers can be matched with people willing to lend, cutting out the middle men. Zopa loans are from people, not banks - social lending at its best. In case you're wondering, Zopa stands for zone of possible agreement.


Borrowers are credit checked with only the top 40% of applicants getting approval to proceed further. There are two types of borrowers and the lenders can decide which bracket they want to lend money to. The lender sets the amount of money they are willing to lend, the rate and the length of time the loan will be paid back.


Members are allowed to borrow up to £15000 and can lend up to £15000 with lenders having their risks spread over a portfolio of loans.


Zopa is authorised by the FSA and has a credit licence from the Office of Fair Trading.


One to watch, definitely.