Zopa fights against credit crisis

In spite of the credit crunch raging across the globe borrowers and lenders in the UK show much interest in loan market as reports UK P2P loan market pioneer Zopa. Within the period of July and September 3700 borrowers joined the system against 2500 a month in the previous quarter.

The trend is explained by the customers’ search for alternative loan options as the banks are tightening their lending criteria says Sarah Kennedy, head, customer proposition, Zopa.

Zopa also reports that during the quarter the number of lenders increased from 300 a month between April and June, to 500 a month. These lenders had an average return in excess of 10% over the last couple of months, compared to 8.9% between April and June.

Zopa system that was introduced in February 2005 by several members of the original management team behind UK Internet bank Egg registered 200,000 users in July this year with lending topping the £23 million mark during the month.