Zopa has reintroduced C risk loans back into its Plus product.
The peer-to-peer lender had adapted its lending criteria in March amid the pandemic and stopped lending to C, D and E risk bands.
However, it is now lending to C band loans again due to more data being available to assess borrowers.
“We added C risk market loans back into our lending mix at the end of April as we had sufficient data to model, develop and implement new credit risk policies which are tailored to the current environment,” a spokesperson said.
“These C risk market loans are borrowers we regard as having less exposure to the impact of coronavirus.”
This means Zopa Core funds are now matched with new A*- B loans and Zopa Plus is matched to A*- C loans.
The spokesperson added that D and E loans will be resumed gradually with a “steady data led approach.”
Zopa has offered borrowers repayment plans and payment freezes during the pandemic but has not disclosed how many have taken these up.
It also reassured investors the volatility seen across the stockmarket recently is not something it expects to see replicated to the same extent in its investment performance.
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