Manhigut – Loans And Mortgages Information

ZOPA social lending

by admin on 17/09/08 at 5:02 pm

ZOPA is the acronym for one Z of Possible AGREEMENT, i.e. the place where those who serve and those who ask for a loan meets and finds an agreement (agreement).

In practice, following certain rules of the so-called Web 2.0 ZOPA has created a platform of encounter between supply and demand to perform a new dimension for loans, a community made by real people who lend money to other real people.

Born in 2005 in Great Britain has created two years in a community that has reached 170,000 subscribers. Building on the success and experience of the English model, Zopa is entering the U.S. market, in Italy and other European countries.

Here is briefly how it works

• Users can register as lenders (who lend a sum of money) or applicants (who takes the loan).
• At the request of the loan, the applicant is asked a series of information about his finances and assets. On this basis, Zopa assigns a rating (A +, A, B, C), for each of these classes will pay an interest rate indicative based on the average rates offered by lenders.
• After the verification is performed with strict internal processes and with the help of companies specializing in the prevention of credit risk, Zopa allows (or not) claimants to obtain the loan.
• The procedure for the Supplier is easier. After providing the basic registration information, the Supplier has the opportunity to see the market and decide which class, for what duration and at what rate to provide a sum of money. Enabling work is done after the recognition of unique Supplier through the first transfer made.
• In a very generic, because the rates are made by the market, we can estimate that the rates of interest on a loan can start from about 5-6% and up to 11-12%, the prices depend entirely on the class of market which one works and the duration of the loan.
• In order to minimize the risk to the Supplier, the money is not given to one person, but split on average 50 different claimants. By this measure, in addition to all the investigations conducted on applicants, the rate of insolvencies in Britain has proved very low (currently 0.2%). In the event of insolvency is the use of a company specializing in debt collection.

Zopa makes profits through commissions agreed with members of the community in the face of all the services offered, or technology platform, creating and regulating the market, evaluation of applicants, the contracts between the two parties.