Online peer-to-peer lender Zopa has reported that January 2012 was its biggest month ever.
Zopa savers lent £8.2 million to Zopa borrowers – without a single banker involved.
The £8.2 million total in January was 42% higher than Zopa’s previous biggest month, when £5.8 million was lent. APRs begin at 6.1% and early repayment is allowed with no charge.
By far the most common reason for taking a loan was to buy a car (more than half of the loans), followed closely by home improvements.
To date, more than £175 million of loans have been arranged by Zopa, and their loans now account for between 1% and 2% of all new personal loans made in the UK each month. Zopa default rate is currently below 1%.
Giles Andrews, CEO and cofounder of Zopa, said: “With the public’s disillusionment with bankers