Zopa Loans

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Zopa made its name in 2005 as the first peer-to-peer lender to launch in the UK. However, it has since closed down its peer-to-peer operations and became a regulated bank in 2020. As well as personal loans, Zopa also offers car finance, credit cards, and fixed-term savings accounts.

Zopa personal loans

Zopa is an online-only bank that offers unsecured personal loans. This means you don’t need to put forward any kind of collateral to act as security for the loan.

You can currently borrow between £1,000 and £25,000 over terms of one to five years.

You should consider how much you need to borrow and how much you can afford to repay each month to help you choose the loan terms that best meet your requirements.

Zopa loan rates

Interest rates on Zopa loans are fixed for the duration of the loan term.

Your income, level of existing debt and your credit history are just some of the factors that could affect the interest rate you receive.

Zopa allows you to check what rate you could qualify for without affecting your credit score. Bear in mind that this personalised quote you receive may not be the same as the representative APR that is advertised by Zopa.

APR, or annual percentage rate, tells you how much a loan will cost you, taking into account the interest rate and any standard fees. The representative APR tells you the maximum rate that 51% of people who successfully get a loan from Zopa receive, so your personalised APR could be higher than this.

Can I get a secured loan from Zopa?

Zopa only offers unsecured loans, not secured loans.

However, if you are planning to buy a car Zopa does offer hire purchase. This is a form of car finance that is secured against the value of the vehicle.

» COMPARE: Secured loan rates

Pros and cons of Zopa loans

There are advantages and disadvantages to a Zopa personal loan.


The benefits of a Zopa loan include the following:

  • You can check your eligibility and see the rate you qualify for without affecting your credit score.
  • If approved for a loan, you could receive the money in your account within minutes.
  • You can use the loan for a variety of purposes.


There are some disadvantages of Zopa loans to consider, including:

  • You may need to pay early repayment charges if you want to pay off your loan early (on loans taken out after 7 September 2022).
  • You may not be eligible if you have a poor credit history.
  • You can’t apply for a joint loan.

How do Zopa loans work?

You can apply for a Zopa loan online by providing Zopa with certain personal and financial details.

If your application is approved and you receive the money in your account, you will then need to repay the amount you have borrowed (plus interest) in fixed monthly instalments.

Does a loan from Zopa affect your credit rating?

You can get a quote for a loan and see what rate you could receive without affecting your credit score. Zopa will only conduct a soft credit check as part of this initial process.

However, if you go on to apply for a loan, Zopa will run a hard credit check. This will be recorded on your credit history and could affect your score.

What if I miss a payment?

If you think you are about to miss a payment, you should contact Zopa as soon as possible to see what your options are as you may be able to work out a more affordable repayment plan.

If you have already missed a payment, you can repay it online without facing a late payment fee. However, Zopa may report missed payments to credit reference agencies, which could affect your credit score.

Can I make extra repayments on a Zopa loan?

You can choose to make extra payments on your Zopa loan, on top of your regular monthly payments. This would reduce the amount of money you owe, and so cut the amount of interest you need to pay.

There is a minimum overpayment currently. You could also choose to pay off your Zopa loan in full before the end of the term.

If you took out your loan before 7 September 2022, you wouldn’t need to pay a fee or any extra interest charges to clear your debt. However, loans taken out after this date could be subject to early repayment charges.

How many Zopa loans can I have?

Subject to credit and affordability checks, you may be able to have more than one loan with Zopa.

However, you currently can’t borrow more than £25,000 across all loans you have from Zopa. This means, for example, that if you already have a Zopa loan worth £15,000, the maximum you could borrow from Zopa on top of this is £10,000.

You will need to wait a minimum of 6 months since your first application if you wish to borrow more.

What can I use a Zopa loan for?

As with most personal loans, you can use a loan from Zopa for many different purposes. For example, you could use a loan to:

  • buy a new vehicle
  • pay for home improvements
  • pay for a weddings
  • consolidate debts

You won’t be able to use a Zopa loan for business purposes.

Am I eligible for a Zopa loan?

To qualify for a loan from Zopa, you will need to meet the following requirements as a minimum:

  • be at least 20 years old
  • be a UK resident and have at least one year of address history
  • earn at least £12,000 per year (before tax)
  • have a good credit history that shows you have paid bills and any forms of debt on time

Zopa can offer loans to people who are employed, self-employed, or retired with a pension, as long as they can afford to repay the loan.

If you meet the above criteria, Zopa will consider your application for a loan. However, the final decision on whether you can get a loan will depend on your individual circumstances.

Can I get a Zopa loan with bad credit?

It may be difficult to get a loan from Zopa if you have a bad credit history. Zopa states that you need to have a good history of paying bills and making payments on any forms of debt, so if you’ve missed payments in the past, you may not meet Zopa’s criteria.

You can see if you are eligible for a loan from Zopa without affecting your credit score.

» COMPARE: Loans for people with bad credit

How to apply for a Zopa loan

Before formally applying for a loan from Zopa, you can see if you are eligible and what rate you could receive. You will need to provide Zopa with details such as your:

  • name
  • address
  • date of birth
  • employment status

Zopa will then run a soft credit check, which won’t leave a mark on your credit history or be visible to other lenders.

Once you have a quote and know the rate you might qualify for, you can then choose to apply for a loan. The quoted rate you receive will be valid for seven days, so, assuming nothing changes in your formal loan application and you apply within this period, you should receive that rate.

When you formally apply, Zopa will run a hard credit check. This will leave a mark on your credit history and could affect your score.

In some cases, Zopa may want to see supporting documents to prove your identity or income, for example.

» COMPARE: Personal loans

How long does Zopa take to approve loans?

Zopa may be able to provide an instant decision on your loan application.

However, if it needs to confirm further details or it needs you to provide any documents as proof of identity or income, it is likely to take longer for Zopa to make a decision on your application.

Once your loan is approved, it may only take up to 15 minutes to receive the loan in your account. However, in some cases, it could take up to two hours.

What if my loan application is denied?

If your loan application is rejected by Zopa, you won’t be able to reapply to Zopa for at least six months.

You should consider why your application was denied and see if you can address the issue before applying for another loan, whether that’s with Zopa or another lender.

You could also check your credit score and see if there are any areas that you could improve.

» MORE: How to improve your credit score

Zopa customer reviews

On Trustpilot, Zopa has a 4.5 star rating based on over 18,400 customer reviews.

Zopa’s mobile app has a 4.9 star rating on the Apple Store from approximately 7,400 reviews, while on the Google Play Store it has 4.5 stars based on over 4,200 reviews.

These ratings apply to Zopa’s range of services, not just its personal loans.

This information is correct as of 22 September 2022.

Zopa Loan FAQs

Is Zopa a payday lender?

Zopa is not a payday lender. Payday loans typically come with high interest rates and short repayment terms and are designed for people with poor credit histories.

Are Zopa loans secured or unsecured?

Zopa loans are unsecured. However, Zopa does also offer hire purchase car finance, which is a form of secured lending as the finance is secured against a vehicle.

About the author

Rhiannon Philps
Rhiannon is a financial writer for NerdWallet, with a particular interest in personal finance and insurance guides for consumers. Read more

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