Announced this week, the program is open to people who are at least 20 years old and have been driving for Uber for at least three months. They must also be a UK resident.
The goal is to help Uber drivers wishing to transition to vehicle ownership. Zopa claims it will result in lower monthly costs for its drives than they incur from renting.
The interest rate the driver pays will be based on individual credit risk. They can borrower up to £22,000 over three to four years at a minimum rate of 6.9 percent APR. Vehicle ownership transfers to the driver once the loan is fully repaid. Early payment options are available.
Zopa institutional lenders initially fund the loans. Upon pre-approval borrowers can choose a vehicle from Toyota Jemca, a UK dealership network.
“Partnering with Uber is an excellent move for us as it marks Zopa’s entry into the secured auto lending industry, allowing us to provide secured loans to a growing market of self-employed customers,” said Zopa’s Giles Andrews.