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Zopa, a pioneer in online financial services, together with USA Federal Credit Union, has launched an online community that offers unprecedented benefits to borrowers and investors, by offering safe, market rate Zopa CDs to individual investors that are linked to lowering the payments of an individual borrower’s unsecured personal loans. Find out more by visiting Zopa.
Third Party Web Site Disclaimer
This link will transfer you to the Zopa web site that is owned and operated by Zopa, which is not governed by USA Federal's Privacy Policy. For your convenience, USA Federal provides weblinks to third party service providers as detailed in our Terms of Use.
You are encouraged to review the web site's privacy policy and terms of use, which may be different than those of USA Federal, before submitting any information. |
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ZOPA AS A “SOCIAL FINANCE” COMMUNITY
Zopa takes traditional borrowing and lending and turns them into social finance tools—where consumers can achieve their financial goals and at the same time help other people. |
Borrowers obtain unsecured personal Zopa Loans, with substantially lower rates than credit cards or loans from big banks. Borrowers not only get a great rate on their loan, but are encouraged to publish a personal profile that contains details about their situation and the reasons they are borrowing. That profile is designed to be shared with friends, family, and colleagues via the Zopa web site, other social networking sites like Facebook and MySpace, or on a consumer’s own blog. The more people who see that profile, the more “help” a borrower is likely to receive, and the lower their loan payments will become.
Investors, by purchasing a Zopa CD, become “helpers”. They pick at least one borrower to help and, by adjusting the rate on their Zopa CD, they can increase the amount of
“help” they contribute to their borrower(s) in the form of a credit towards the borrower’s monthly loan payment. In this way, investors can help other people while still enjoying an attractive, guaranteed, and insured return. Whether a borrower repays their loan on time has no effect on the investor’s rate of return on their Zopa CD.
A GLOBAL PIONEER, KNOWN FOR SAFETY
Zopa created the first social finance offering in the world, with the March 2005 launch of its online peer-to-peer lending operation in the United Kingdom. Built from the ground up around the idea of safety, Zopa has always emphasized the importance of professional underwriting and a host of other safeguards. These precautions have led to some of the lowest bad debt rates in the industry.
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