What people are saying
about lending
Journalists
The Guardian
"What's arguably made Zopa a really appealing proposition is the combination of plummeting interest rates and the lending clampdown brought about by the credit crunch. Savers who not long ago were getting 5% or more on their cash are now getting far less, while many borrowers have been unable to obtain loans at sensible rates. Over the past 12 months, its lenders have enjoyed an average annual return of 9.1%."
The Financial Times
"Which financial institution has just reported a 140 per cent rise in lending year on year? The answer is Zopa, the online lending site - never a bank - where the borrower and lender agree the rate at which transactions are carried out. (Can't quite see that catching on with the high street banks.) �35m has been lent in this way so far. But the journey of 1,000 miles begins with a single step. The recovery starts here."
The Independent
"Zopa, the social lending website that cuts out banks, lent a record �2.5m in February and is piling on new members as the credit drought makes its service more attractive. The company, which brings lenders and borrowers together via the internet, said its business grew rapidly in the second half of last year as bank lending prices rocketed while savings returns tumbled."
The Motley Fool
"We have a new asset class with the entry of Zopa. (It's new relative to bonds, shares and certainly cash.) To many, it's still just an intriguing, ethical idea that enables people to lend to other people, removing the banks from the process. To others, it's a huge opportunity to make a fat pile of cash."
The Times
"How would you like an average return of 9.1 per cent on your savings in the knowledge that your money is directly helping someone to pay for their wedding or university fees - and all without having to deal with incompetent call-centre workers? This is what is on offer from Zopa.com, so it is little wonder that the number of people shunning conventional savings accounts for the peer-to-peer lending website has risen eightfold since the beginning of last year, with more than 2,500 new members joining last month alone."
This Is Money
"Desperate for the days when savings rates topped 7%? The closest you are likely to get to this now is online lending website Zopa. The site has turned heads by offering amazing savings rates of over 9%."
MSN Money
"Internet-based loan market Zopa is one of the most promising candidates to come blinking into the sunlight. By cutting out the bank middlemen and much of the overheads, borrowers get lower rates and lenders get higher ones. It's a bit like peer-to-peer music swapping, except what is being swapped are money and interest rate promises.
The Telegraph
"Now that the incompetence of many professional bankers is plain for all to see, rising numbers of savers and borrowers are going online to cut out the middleman. Better still, while interest rates stand at their lowest level in many people's lifetimes, DIY bankers who advance loans online can still get returns of 9pc."
Moneyweek
"Britain's ground-breaking 'social lending' exchange is enjoying a boom in business thanks to the credit crunch. Looking for a decent rate of return on cash and not frightened of lending your money to someone you don't know? Zopa is a unique online exchange that matches up cash-rich individuals directly with needy borrowers seeking modest loans. The idea is that the market sets the going rate, and both lenders and borrowers get a better deal by avoiding using an overheads-heavy, profiteering bank."
Lenders
Diane, from Derby
"I loved the idea of social lending and as the lender, you are able decide what risks you want to take and how much that risk is worth in return. I'm making returns varying from 6.4% to 13.4%. It's really nice to be a part of something where the profits aren't going to a faceless organisation � all the investors are just normal people."
Ian, from Bolton
"I am getting around nine per cent gross, eight per cent after the fees and bad debts are taken into account, which is very good given the current economic situation."
Oliver, from Sheffield
"It was the rates which attracted me. The idea of choosing rates myself and seeing what worked seemed quite fun. My current return is about 7.5% (after Zopa fee I think) which is quite a bit higher than any savings account I've had."
Matt, from Stoke on Trent
"Zopa allows me to lend money to those who I think need it and also allows me a good return in times when interest rates are falling through the floor. I'm an ethical person and as people become aware of the waste in the current banking sector they hopefully can see the benefits of putting people back in control of their money."
David, from Taunton
"I like the idea of lending directly to an individual and cutting out the banks. It means everyone gets a better deal without making the fat cats even fatter. The returns are as good as I could get with any building society and I am planning to increase my lending in the very near future."
Craig, from Darlington
"I like lending directly to an individual that wants something in particular, and the idea of cutting out the banks really appeals to me, especially at the moment.
It�s really interesting to see what your money is going towards � I�ve supported loans for everything from cars and holidays to debt consolidation and garden revamps!"
Mary, from Bicester
"I liked the idea of doing something that could help people in debt by giving them lower interest rates. It is mutually beneficial though, as my rates were generally better than in a savings account."
Next... The Zopa markets