ZOPA Personal Loans

kirstblueyes24

Hi Guys and Girls,

I just wanted some advice. We are looking for a loan for our wedding and we have seen a lot of advertisement about Zopa loans.

But how do they work. I dont quite fully understand the concept even though I have read their website.

What confused me is the whole receiving of the funds. When it started going on about transferring money from nominated account into zopa wallet it lost me to be honest. So if anyone can give clarity on this I would be very grateful.

Thankyou x

DCFC79

Zopa dont lend the money themselves but use people with spare cash to offer loans via Zopa so its not a normal lender like a high street bank. They only lend to people who have a very good credit history.

Im sure someone else would expand even more on what Ive posted.

Apples2

Rule No 1 on MSE = Never mention loans for weddings.

Clive_Woody

Apples2 wrote: »

Rule No 1 on MSE = Never mention loans for weddings.

I thought Rule No 1 was never put the phrase 'mis-sold loan' in the title of your thread.

Perhaps I've got an old copy of the rule book.

JimmyTheWig

DCFC79 wrote: »

Zopa dont lend the money themselves but use people with spare cash to offer loans via Zopa so its not a normal lender like a high street bank.

Whilst true, I can't see that this makes any difference to someone borrowing money.

Apples2

Oh! hang on....

http://forums.moneysavingexpert.com/showpost.php?p=63886261&postcount=8

Hi Busymumy, I was employed with the police force for 7 years , and went bankrupt in 2010.

I wouldn't bother applying.

retepetsir

Best thing you can do is save up

DCFC79

JimmyTheWig wrote: »

Whilst true, I can't see that this makes any difference to someone borrowing money.

Yes I see what you mean.

I was trying to explain a bit about Zopa whether it was helpful or not I dont know.

Mattygroves2

kirstblueyes24 wrote: »

What confused me is the whole receiving of the funds. When it started going on about transferring money from nominated account into zopa wallet it lost me to be honest. So if anyone can give clarity on this I would be very grateful.

Those instructions are for people who invest with / lend via Zopa rather than for people who want to borrow via Zopa. You need to complete the form for "Get a Loan".

It works by people who have got money to invest giving their money to Zopa in exchange for a defined interest rate (as it works at the moment) based on how much risk they are willing to take and how long they want Zopa to have their money for. Zopa then use this money to lend to the people who apply to them (and are sufficiently credit worthy) and then use the interest they get from their borrowers to pay the people who gave them the money to invest (taking their cut on the way). The idea is that by only lending to people with good credit positions the rates are lower than the highstreet lenders.

27col

kirstblueyes24 wrote: »

Hi Guys and Girls,

I just wanted some advice. We are looking for a loan for our wedding and we have seen a lot of advertisement about Zopa loans.

But how do they work. I dont quite fully understand the concept even though I have read their website.

What confused me is the whole receiving of the funds. When it started going on about transferring money from nominated account into zopa wallet it lost me to be honest. So if anyone can give clarity on this I would be very grateful.

Thankyou x

If you have a record of defaulting on loans then don't even bother applying. Small lenders on Zopa like myself, do not take kindly to losing our hard earned money to defaulters.
Luckily, Zopa's lending criteria are very strict so that their default percentages are very low. Long may it continue so.
Your confusion with the website is because you are looking at the section for lenders. You should be looking at the section for potential borrowers.
Incidentally many people seem to think that they are lending money, when in fact they are borrowing money. No wonder they get into trouble, if they do not know the difference between borrowing and lending.