Zopa breaks £1bn lending barrier

P2P lender Zopa has lent over £1bn, and has already lent more in 2015 than it did in the whole of 2014.

Zopa breaks £1bn lending barrier

In 2014, Zopa lent £265m, and the company now expects to lend £550m in 2015.

The lender said much of this growth has come as a result of people losing faith in traditional banks, citing a survey of 2,000 people it conducted in July. This survey found that 53% of respondents had lost trust in banks but still use them due to lack of alternatives available.

Breaking down the figures, Zopa revealed that car loans made up 40% of all loans, by volume, above home improvements and debt consolidation (22% each).

Since it launched ten years ago, Zopa has lent to 146,000 people, while the number of lenders it has recorded has reached 61,000.

Its average lending interest rate is 5%, and the amount of interest it has returned in this period has broken £57m.

A spokesperson told Motor Finance that the company has made 66,000 car loans, of which 15,000 were in 2015. The average loan size for 2015 has been £7,000, with the most popular term time lasting five years.

Zopa co-founder and chief executive officer Giles Andrews said: “We’re delighted to have lent over £1bn and will continue to deliver the best service across consumer finance as we aim to lend our next £1bn in 2016.