Zopa launches unique ‘Young Markets' service - Loans - News - Moneyfacts

News

Zopa launches unique ‘Young Markets' service

Zopa launches unique ‘Young Markets' service

Category: Loans

Updated: 31/10/2008
First Published: 30/07/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Zopa launches an innovative new service to help young adults who can't get a personal loan because they have a limited credit history.

Zopa - the world's first person-to-person online lending exchange - has just launched its new 'Young Markets' service to help those aged 20 to 25 obtain unsecured loans at very competitive rates. The new service has been developed to help the many people of this age who cannot get loans at decent rates simply because they have little credit history - NOT because they have a bad one.

As is the case for all would-be borrowers who come to Zopa, young people with a bad credit record or those looking to borrow more than they can reasonably afford will still be declined. But those with a clean record or only a limited record will be able to apply for loans, subject to Zopa's normal identity checks etc.

Zopa lenders can choose to make offers to these young applicants, with the added attraction of being able to charge a higher rate of interest because of the higher risk that these as yet unproven younger borrowers represent. So whereas the safest borrowers coming to Zopa can typically get a £5000 loan over 3 years at around 8.5%, Young Market borrowers will be able to get the same loan at around 12.5%.

Related links:

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close