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%.
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