In order to join Zopa as a potential borrower, you must be earning at least £25,000 a year before tax. Zopa will not accept you as a member if you have high levels of unsecured debts or historical debts. When you apply for membership, Zopa carries out a credit check.

Zopa, which stands for zone of probable agreement, does not stipulate the interest rates at which you may arrange a personal loan. Instead, Zopa lenders pick the rates they want to lend their money out at based on the combined credit ratings of Zopa borrowers.

Subject to the funds being available in the Zopa market, you can borrow from £1,000 - £15,000 under contracts of £10 each, in multiples of £500. You will be required to pay a 1% exchange fee but Zopa makes no advance charges and you can repay your Zopa loan at any time, with no additional charges. You may borrow funds from Zopa over periods of between six months and five years.

As a market-place, the interest rates available on Zopa vary constantly depending on the lenders in the market. So, if you don't like the rates currently on offer, you could always try again later to see if there is a better one. Do remember that the rate could go up as well as down. Once you have arranged a loan the rate will be fixed for the duration of the loan.