Life is full of unexpected events, and sometimes emergency savings are not always available. Or, if available, it might be not enough to cover the expenses. Here’s where personal loans come in handy. These loans are often more flexible in terms of repayment terms and interest rates than other unsecured loans. If you have good credit, you can get even better terms. We’ve reviewed lots of loans offered by various lenders; now, let’s talk about Zopa personal loans. Is it the right option for you?
Zopa Limited in a Nutshell
Zopa is a peer-to-peer lending company that started back in 2005. It later expanded into the banking sector in 2020 to help its customers manage money better. Operating both businesses enables the company to meet the needs of its clients. A peer to peer lender basically connects investors with potential borrowers through online services. This allows borrowers to access funds quickly.
Key Features of Zopa Personal Loans
You can use personal loans from Zopa to fund virtually anything, from debt consolidation to home improvements, making major purchases, to paying for a wedding, among other purposes. Here’s a quick rundown of what the loans entail;
- The loan amount ranges from £1,000 to £25,000
- Repayment period from 1 to 5 years
- Online only – no forms or paperwork
- Interest rates start from 3.9% up to 34.9 %
- Fixed interest rate, providing payment stability to the borrower
- No penalty for early repayment or overpayment
- A soft credit check means it won’t affect your credit score
- Charges non-refundable origination fees
- If approved, you can receive funds within 2 hours
Who Can Apply?
To be eligible for Zopa personal loans, you must meet the set requirements. But before applying for any loan, it’s essential to know your credit rating. This will give you an insight into how much you can qualify for and the rates to expect. Let’s go over Zopa eligibility requirements;
- Be at least 20 years old
- Have a good credit history
- Have been a UK resident for at least 3 years
- Must be in employment, self-employment or retired with a pension
- Have an annual gross income of at least £12,000
Zopa Personal Loans Rates
As briefly mentioned, Zopa rates range from 3.9% up to 34.9%. The rates you receive depend on how much you borrow, the length of the loan, income, credit rating, among other factors. Since credit rating is a significant determinant, you can qualify for better rates if you have a high credit score. This will save you lots of money in interest over the life of your loan.
Securing a loan from Zopa with bad credit is not guaranteed. Since good credit history is a requirement, chances are you might be turned down. And if your application is approved, you’ll have to deal with high-interest rates and fees.
If you borrow £10,000 over 60 months at an APR of 17%, your monthly repayment will be £242.32. So at the end of the 5 years, you’ll have paid a total of £14,539.29.
Now it’s up to you to decide if Zopa personal loans suit your needs best. If you have a good credit score, you should consider Zopa because it offers better rates and terms than most P2P lenders.