Zopa Hits 50,000 Users
Zopa, an online service that matches personal borrowers with lenders typically resulting in lower interest rates than high-street banks, turned one year old last week.
The service seems to be doing quite well, with over 50,000 registered users and the supply/demand equation is currently in the right place with more people wanting to borrow than there are people wanting to lend.
Things have got so bad that Zopa are paying an additional 2% to any new lenders i.e. even if a borrower is only paying 4.9%, Zopa will pay the lender an additional 2% giving a total payment of 6.9%.
I’m toying with putting some cash in next month to see how the system works and also because one of my old colleagues is one of the founders. In fact the site describes him as the “Inventor of the whole shebang”
To find out more about Zopa then click here
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Comment by James MacAonghus on 15 March 2006:
that’s just crazy, I like the whole web 2.0 thing but no peer is going to get their grubby hands on my money! No, I’d rather give it to HSBC for less interest so they can announce record profits - which at least is patriotic given that they are British. Oh wait, what does HSBC stand for?
Now, is it irony that has made Zopa offer free alcohol to lenders, on their homepage?
Most loans are going at about 4.8%, although you can get 6-7% - I am not sure why you would do this as a lender instead of putting your money in the bank for the same interest … unless it is to avoid tax?
Can you ask your friend that - ignoring the 2% offer - why would a lender use Zopa (where most loans go for 2.x%) rather than any bank, which easily gives 5% (see moneysupermarket.co.uk)?
I can see this as a good way for semi-friends to lend to each other, i.e. it’s not too formal but there is some record, but I don’t understand why you would lend to strangers through this site.