Need to borrow money?

ZOPA lending (Zone Of Possible Agreement) may be the place in the near future that you'll want to try. Currently in the UK, but soon to start up in the US, ZOPA is an institution where you will be able to get online loans.

The premise for this new lending service is that people who have money to lend are put together with people who want to borrow money. This is known as peer-to-peer lending. Several lenders are pooled so that investment money is spread out. Borrowers are closely checked to be sure of their credit score and history. Here's what they say:

* A great alternative to savings
and investments
* An average gross return of 6.75% pa
on money lent to date (before tax)
* All borrowers are identity-checked
and credit-scored
* Your money is spread across at least
50 borrowers when you lend £500 or more
* Set your own rates and terms

Lenders can earn much more interest through ZOPA than through conventional methods. Borrowers will have lower APR rates and there's no penalty for early payoffs.

This system cuts out the "middle man" of using a bank for either borrowing or for investments or savings because it networks the borrowers and lenders together.