Metro Bank has announced it will lend funds through the Zopa P2P lending platform, offering an attractive rate of interest for investors.
Giles Andrews, CEO and co-founder of Zopa said: “This is another milestone for Zopa and the P2P industry as this partnership brings together two key challengers to the traditional financial services landscape and signals our intent to become a mainstream service.”
He added that partnering with Metro Bank is an important forward step in the P2P lending platform’s history because it demonstrates retail banks are accepting the potential of such lending and support of the growing entrepreneurial status of the UK.
“We’re delighted that Metro Bank is lending through Zopa and we look forward to working even closer with Metro Bank on future opportunities and products,” he said.
Craig Donaldson, chief executive officer at Metro Bank added: “At Metro Bank we’re committed to revolutionising UK banking and we’re delighted to have partnered with Zopa, a fellow financial challenger.
“The partnership we have with Zopa is a cultural fit that works perfectly with our commitment to providing a convenient and customer-focused banking experience and we look forward to working with them closely.”
Zopa lends money to people looking to purchase large items such as cars and those who need funds to consolidate their debts or renovate their home. To date, it has lent £858 million from 51,000 lenders and offers rate of interest lower than many high street banks, while also offering investors higher rates of interest they would usually obtain through long-tem investments.
Loan terms are either three or five years and interest rates are four per cent and five per cent respectively. It’s a flexible investment for lenders, allowing them to take lump sums out when they wish or receive monthly payments as extra income.