The S market at Zopa is comprised of loans to self-employed individuals, who are seeking a loan for their business.
We launched the S market in the second half of 2013, and these loans currently make up less than 0.1% of the loan book at Zopa.
Self-employed borrowers looking for an unsecured loan for personal reasons (car, debt consolidation etc.) typically make up 3% of approved loans, and are allocated into the standard risk markets.
Loans for business purposes from self-employed borrowers were classified separately into the S market in order to monitor the performance of the particular loan type.
Based on the performance data we have collected and assessed we are now comfortable allocating these loans into the standard risks markets (A* – E) appropriate to their level of risk.
So, as of 10th June 2015 self-employed borrowers, applying for an unsecured loan for their business will be allocated into the standard risk markets, rather than into the S market. Loans that are currently assigned to the S market will remain in the S market until they have closed.