An innovative website, Zopa, which is the world's first person to person lending scheme - has reported profits of over £23 million and includes a total of more than 200,000 users.

The site, was set up in March 2005, has helped borrowers to gain loans, which have enables a wide range of uses. Loans at Zopa have so far funded the purchase of 13 boats, more than 2000 cars and motorbikes, 1200 home improvements and 83 weddings.

Since the launch, Zopa lenders have enjoyed an average return of 7.3 per cent and over the last three months a much higher 8.9 per cent (after charges and any bad debt). Given these rates are typically over a three year period and are effectively fixed, Zopa lenders have enjoyed better returns than almost all of the best deposit account deals being offered by the banks and with no strings attached.

Despite the negative impact of the 'credit crunch', the default rate across Zopa loans has remained extremely low at 0.02 per cent, reflecting the very responsible approach Zopa takes to lending and the effectiveness of its credit and affordability checking processes. Zopa believes this to be the lowest default rate of any personal loan book in the UK.

Giles Andrews, UK Managing Director and cofounder of Zopa said: "Reaching the 200,000 mark is very satisfying, but given the difficulty so many people in this country are facing when trying to secure a loan at a competitive rate, we know the number could be much, much bigger. As more people get to know about Zopa and the excellent deals that are available by borrowing from other people rather than the banks, we know the number will climb higher and higher."