Zopa in the US have an interesting model that allows members to purchase Credit Union issued CD’s (GIC in Canada) and share their high rate interest with borrowers they would like to help. In a relatively short time, they have achieved 10,000 members.
It was originally expected that the investors in CD’s would be helping family or friends, however, from the tone of this article, it suggests this assistance might be beyond that.
“We’ve been very pleasantly surprised at how quickly our borrowers have been able to encourage others to invest in Zopa CDs in order to enjoy a negative effective rate on their Zopa Loan,” added Dolton. “In today’s challenging economic climate, seeing how Zopa has enabled borrowers to save significant amounts on their loan payments is very satisfying.