If you usually save money you will put it into a bank account and the bank will pay you interest. Banks will then pretty much do whatever they like with it and the credit they can generate from it. Some of it they lend to people who need to borrow.

Some of it they give to their shareholders. As we all know banks make lots of money from all this, a fraction of which they give back to their customers.

What’s good about a Personal Loan? If all the junk mail and newspaper ads from the big banks are to be believed, a Personal Loan is a great product that everyone should
have!

In reality, the best thing is usually receiving the money, and buying your big holiday ticket, highly desired car or piece of technology and even paying off those debts… it’s rarely the loan itself, but that is
about to change, thanks to Zopa.

Zopa is an abbreviation of “Zone of potential agreement”, but is essentially an online marketplace where borrowers and lenders are brought together with a view to satisfying each others financial requirements.

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