By : Melliany Hermanus

ZOPA.COM

The Definitions..??

Zopa is a marketplace for social lending. People lend and borrow money with each other, sidestepping the banks.

This is an online lending and borrowing marketplace in which both leaders and borrowers get better rates, comparing to banks.

How it works and the borrowers condition..??Borrowers pay a fee of £94.25 (the fee is paid

up front when the loan application is agreed)Borrowers size up the rates offered to them. If

they don’t like the rates today, they can come back tomorrow.

Borrowers are bounded into legally contracts with their lenders.

Borrowers repay monthly by direct debit.If a borrower repays early,the lenders pays no

fee on the portion of the loan that has been repaid.

Anyone who Zopa feels is not creditworthy will be prevented from borrowing at Zopa.

The Lenders Condition..??Lenders make lending offers. (ex: I’d like to lend this much to A-rated

borrowers for this long and this rate)Zopa lenders only lend small chunks to

individual borrowers. (to reduce any risk)A lender lending £500 or more would have

their money spread across at least 50 borrowers.

Lenders pay an annual 1% fee on the amount they lend to borrowers.

Lenders are not charged for many which has not been lent out.

The fee is occured on a daily basis equivalent to 1% p.a. and deducted monthly from their holding account balance.

If a borrower defaults on part of their loan, the lender is not charged a fee for that part.

Lenders can choose their rates and loan length, and whether they want to lend in the A,B,C or young markets.

Lenders earn 0,75% below the prevailing Bank of England base rate in interest even while they’re waiting for their money to be lent out.

Their lenders enter into legally binding contracts with their borrowers.

Zopa services..??

Zopa earns money by charging borrowers a £94,25 transaction fee and lenders a 1% annual servicing fee.

The Zopa website is safe, secure and easy to use, and is open to lenders and borrowers 24 hours a day.

Zopa takes care everything dealt with the contractual side of things between lenders and borrowers.

Zopa cooperates with equitax (an independent company) to check on all potential lenders and borrowers

Zopa distributes the money between parties.Anyone who Zopa feels is not creditworthy will

be prevented from borrowing at Zopa.Zopa reduces risk by spreading lenders money

across a range of at 50 borrowers.Zopa guarantees each borrowers ability to

repay before any loans are approved.Zopa’s collections agency chases any missed

payments on each lenders behalf.

Zopa consists of a dedicated, passionate team of people who have done this sort of thing before.

Zopa’s customers service team is only an email away.

Zopa’s highly trained under writing team comprises real live people who look at every borrowing application on an individual basis.

Zopa’s technology tteam is constantly looking for ways to improve the site.

Zopa’s marketing team works hard to spread the word about Zopa and actively seeks out lenders and quality borrowers.

FinallyThe more people there are at Zopa, the more

people there are to lend to and borrow from – and the better it is for everyone.

Where as , for certain, at Zopa, people who have spare money lend it directly to people who want to borrow. There are no banks in the middle, no huge overheads, and no unethical investments.

And everyone’s happy – lenders get great returns, borrowers get great rates, and theres not a bank or a bank manager in sight.

Thank you for reading