Zopa passes 200,000 members

	Typical APR	Per Mth
	7.8%	£155.61
	8.8%	£157.75
	10.8%	£162.04
	10.8%	£162.04
* Based on £5000 over 3 years and is not a full search of the whole market

Zopa (Zone Of Probable Agreement), the world's first person to person online lending exchange, now has more than 200,000 members. Total loans at Zopa recently topped £23 million, a little more than 3 years after launching in March 2005. Amongst a wide range of other uses, loans at Zopa have so far funded the purchase of 13 boats, more than 2000 cars and motorbikes, 1200 home improvements and 83 weddings.

Since launch, Zopa lenders have enjoyed an average return of 7.3%, and over the last three months a much higher 8.9% (after charges and any bad debt). Given these rates are typically over a three year period and are effectively fixed, Zopa lenders are enjoying better returns than almost all of the best deposit account deals being offered by the banks - and with no strings attached.

Despite the negative impact of the credit crunch, the default rate across Zopa loans has remained at an extremely low 0.02%, reflecting the responsible approach Zopa takes to lending and the effectiveness of its credit and affordability checking processes. Zopa believes this to be the lowest default rate of any personal loan book in the UK.

Giles Andrews, UK Managing Director and cofounder of Zopa said, "Reaching the 200,000 mark is very satisfying, but given the difficulty so many people in this country are facing when trying to secure a loan at a competitive rate, we know the number could be much, much bigger."

15 July 2008 © Moneyextra.com

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