Zopa loans will soon be available in the US with some MAJOR changes that will set it apart in the US marketplace.
Zopa pioneered peer to peer lending in the UK.
In the US though, they are teaming up with some major credit unions to make sure it’s even better in some respects.
Here’s how:
* No risk for investors. Your funds will be federally insured. No more worrying about whether your borrowers will pay your loan back.
* Pick who you want to help. Investors will choose exactly who they want to help.
* Set your rate. Investors will choose how much they want to earn, up to a ceiling.
* No waiting. Borrowers will get their loans immediately upon approval.
* Lower your monthly payment. Borrowers can actually reduce their loan payments after they’ve borrowed.
Peer to peer lending helps borrowers get lower rates and “investors” get potentially better returns though, obviously, if there’s someone guaranteeing your safety, they’ve got to take your cut. It still should prove superior to ordinary savings rates.
This opens up new avenues of credit for consumers and microbusiness and ways for savers to see how their money is used.
These new developments are quite exciting! Here’s what the new site will look like:
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