Zopa Borrowers with 0.00% Loan Rates?

Zopa US is offering the closest thing to a win-win proposition for borrowers and lenders who use their social lending site. Borrowers are able to lower their interest rates on personal loans by using a personal profile and social networking tools like e-mail, blogs, Facebook, and MySpace to get help on her loan from lenders. The Zopa website is listing a number of borrowers who even received enough help to bid their loan rate down to 0.00%! Lenders are guaranteed a rate of return linked to a one-year credit union CD. Lenders donate a portion of their interest to one of the Zopa borrowers at their own discretion. The rate (before donations) is 3.75% on the NCUA-insured one year CD issued from one of the following credit unions:

Addison Avenue Federal Credit Union

Affinity Plus Federal Credit Union

First Tech Credit Union

Forum Credit Union

Provident Credit Union

USA Federal Credit Union

The Zopa model was first introduced in the United Kingdom, Italy, and Japan before launching in the United States in 2007. Zopa US makes it very simple to promote a loan which is listed on their site. The original loan rates compare favorably to other personal lending sites even before donations help lower the rate. Not everyone is going to be able to receive enoug donations to get their loan rate down below 6%, but Zopa makes it easy to try.

Find more information on Zopa and social lending sites by visiting the Money-Rates.com Social Lending Report.