Loan Lending App Development Company

Applying for a traditional loan is a hectic and time-consuming process. It involves multiple visits to the bank and filling out various application forms.

However, modern consumers look for accessible and convenient solutions. That's why loan lending app development is becoming popular these days.

Loan lending apps are designed to make the process easy and simple. They will help resolve the obstacles you face while applying for a loan. The app offers end-to-end support to borrowers related to applying for a loan.

If you want to know how to build a loan app, this blog is for you. We will study what a loan lending app is, how it works, its cost, and its must-have features.

What is a Loan Lending App?

Money lending apps are digital solutions that connect money lenders and borrowers. It allows users to borrow money from any bank or institution in a hassle-free manner without having to physically visit banks, loan brokers, or any other financial institutions.

You can avail of different types of loans such as personal, car, mortgage, or business. There are mainly three types of lenders providing loans:

• Banks
• Credit Unions
• Individuals

Types of Loan Lending Mobile Apps

When developing digital solutions, it's important to consider the different types of money-lending apps, as they vary depending on the type of loan.

Payday Loans App

These mobile apps provide loans with high-interest rates and a short repayment period of one month. Individuals needing immediate funds to bridge the gap until their next paycheck can conveniently apply for a loan using one of these user-friendly applications.

Unsecured Personal Loans

An unsecured loan refers to a personal loan that does not require collateral. The lender won't require you to put up your house or car as collateral. Unsecured personal loans are commonly utilized for significant expenses such as purchasing a new car or undertaking a home renovation.

Secured Personal Loans

Secured personal loans typically require collateral. You must offer a valuable asset, such as your house or car, as security to obtain a loan. Secured personal loans typically come with lower interest rates compared to unsecured loans.

Home Loans App

Developing home loan apps can be a valuable way to support individuals facing mortgage challenges. Witness the seamless global expansion as it unfurls by investing in developing user-friendly fintech software.

Student Loans App

Apps for student loans typically target a demographic that particularly needs financial assistance to cover higher education costs.

Money Lending App Development - Statistics

The loan lending apps market has witnessed unexpected growth in the past and will increase at a higher pace in the coming years.

• The global FinTech lending market size was valued at $449.89 billion in 2020 and is projected to reach $4,957.16 billion by 2030, growing at a CAGR of 27.4% from 2021 to 2030.
• According to Acumen Research and Consulting, the P2P Lending Market Size will Touch USD 804.2 Billion by 2030.

How Does The Loan Lending App Work?

The money lending app provides multiple borrowing options to lenders 24/7. Most loan lending apps work on the same business model and follow the same process:

For Borrowers

1. Users can create their accounts by providing some basic information such as their name, address, and income details.
2. The next step would be choosing the loan type and the amount the user needs to borrow.
3. The money lending app offers users different loan options and information about the lender.
4. Use the "Compare loan offers" feature to select the best option to avail the loan.
5. Then complete the loan application and submit it to the lender.

For Lenders

6. After submitting the loan application, the app forwards the loan application to the lender.
7. The lender can approve or reject the loan application based on the user's profile and financial history.
8. If the loan is approved, the money will be credited to the user's bank account.

How to Create a Loan App?

The loan lending apps have a great future ahead.

• According to projections, the global FinTech lending market is expected to reach a staggering $4,957.16 billion by 2030, with a projected compound annual growth rate (CAGR) of 27.4 percent from 2021 to 2030.

Are you planning to get a futuristic loan lending mobile app developed for your business? Here is an overview to keep in mind while opting for loan app development.

Loan lending app development begins with an idea, but before you build a loan lending mobile app for your business, you must understand market trends. Analyze what your expectations are and how you are gonna meet your expectations with the loan lending apps. Next, list the MVP features and select the technology stack.

Let us have a look at the detailed process we follow to create a loan app.

Idea Generation

This is the first step towards loan lending app development. In this, you will decide your business requirements and find out why you need a loan lending app. Also, check what goals you wish to achieve through the app. Make sure you analyze each and every factor carefully.

Search For An Expert App Development Company

The next thing you need to do is to locate an expert mobile app development company. The company you choose must have expert loan lending app developers, advanced tech stack, and development technologies with them. Discuss your business goals and must-have features of the lending loan app with them.

Designing And Development

First of all, it will create an eye-catching internal and external design. After that, it will move toward the development portion. Ask them about the tech stack they have for app development.

Testing And Launch

After the loan lending app is designed, the next is the testing phase, in which the app's performance will be checked. All the features will be tested on a real-time basis. All the bugs or dysfunctionalities are fixed. Once the testing is done, the app will be launched in the market.

Post Launch Support And Maintenance

After the app launch, the further challenge is to upgrade the app with the latest features and technology. The development company offers post-launch support and maintenance, which helps to improve the app's functioning and market performance.

Must-Have Features Of Loan Lending App

Thoughtful feature selection is crucial to developing a lending app that boasts an appealing interface, an intuitive user experience, and high user satisfaction.

Here are some exclusive features the app must have:

Registration

The registration process is a crucial aspect of any app. However, if you desire your lending app to gain attention:

• Allow users to explore the app and its key functionalities before registering.
• Enable customers to easily register and log into their accounts using various methods such as email addresses, phone numbers, or social media handles from popular platforms like Google or Facebook.
• It's important to remember that achieving higher user adoption rates is achievable by providing a simple and user-friendly experience.

User Profile

This feature lets users easily update their profile information, including their name, location, and more. Implementing the practice of hiding user profile details by default is highly recommended. For the benefit of new users, including template information in all fields would be helpful.

Profile Approval

There is a profile approval option to ensure authorized customers get connected to the app. The profile verification process will be done after verifying the identity-related documents of the borrowers.

KYC Approval

The loan lending app will make the KYC verification of the borrowers easy and simple. Through the app, businesses can schedule a KYC visit at the borrower's place and collect all the documentation required for loan processing. This process can be done online if the borrower resides in a faraway place.

Loan Application Form

This feature enables users to easily apply for a loan, choose a repayment period that suits them, connect with lenders, and conveniently track the progress of their application.

It may be beneficial to break down the loan application process into smaller, more manageable steps, which can help users navigate through it more smoothly.

Loan Calculator

The app has an inbuilt loan calculator. This will help borrowers calculate loan amounts, interest rates, monthly EMIs, and other important calculations. Borrowers and lenders can make their calculations easily and conveniently using this feature.

Set Payback Period

This option makes the app the best bet for borrowers and lenders. Borrowers can choose their payback period according to their preferences and paying capacity. The EMI will be displayed so the borrower can choose the best-suited payback period.

Admin Dashboard

The loan lending app has a featured-rich admin dashboard allowing businesses to manage the activities on the app. The admin can manage all the customer requests efficiently. Through the admin dashboard, the admin can get the stats related to the performance of the app.

Reporting And Analytics

Real-time reporting is an important part of the loan lending app. The lending businesses can analyze the app insights and check the visitors on their profile and their search results. This will help businesses make the right decisions and experience higher growth levels.

Push Notifications

The app provides constant notifications to borrowers and lenders. The borrower would be notified whenever a new lender is added to the app, progress on their loan process, or their upcoming EMIs.

Credit Score

Integrating your app with a credit score service can greatly enhance its ability to assist users in determining their loan eligibility.

Chat Support

Users may still seek assistance despite the convenience of lending apps that eliminate the need for in-person interactions with a clerk. In addition, implementing a live chat feature with your agents can be an effective solution for handling such situations.

Tech Stack Used For Loan Lending App Development

Your team of developers should be knowledgeable about these tech stacks:

Benefits Of Loan Lending App Development For Businesses

If you are looking for a profitable and unique business opportunity, loan lending mobile app development is a perfect choice. The app has great potential and can take your business to higher growth levels. Below given are the benefits of the loan lending app:

Elimination Of Intermediaries

The platform facilitates lenders to come in contact with the borrowers who wish to take the loan, thus eliminating the need for intermediaries. The lenders can directly contact the customers easily without any hindrance. Eliminating intermediaries helps lower the risk level and enhance the security and privacy of the borrower's personal data.

Enhance Transparency

The loan lending app offers transparency to borrowers. Borrowers can enter their borrowing needs on the platform and find a suitable lender to fulfill them.

The process is very transparent in nature. There is no hidden cost or other costs involved. The transparency in the loan lending app makes it a safe and secure lending platform for borrowers whom they can trust.

Easy Loan Procedure

The traditional borrowing procedure is very hectic and time-consuming. The borrower and lender must invest much time and effort to complete the loan procedure.

However, with the emergence of loan lending apps, the procedure has become very simple and streamlined for businesses and customers. The borrowers will upload their documents on the app directly, and lenders can verify them and decide whether to accept the loan application.

Wider Customer Base

Acquiring customers has become very challenging for financial institutions due to the widespread competition. But with the help of a lending app, your business can acquire more customers on a global level.

The app will help in scaling up your business growth. You can reach a large number of customers without facing any locational constraints. Also, marketing your business can be easy with the help of the loan lending app.

Automated Business Processes

Verification of borrowers' authenticity and preparation of loan documents manually can be a major challenge for your business. The loan lending app will help automate your business processes and simplify them more simply.

You can easily manage your business through the app without having any physical presence. The app will help minimize errors during the loan approval process and help you make the correct business decisions.

Cost Of Developing A Loan Lending App

The cost of developing a loan app is not the same for everyone. Below is a rough estimate of loan lending app development cost region-wise:

• Southern America: $15-$75/hour
• Northern America: $50-$25/hour
• Western Europe: $50-$200/hour
• Eastern Europe: $20-$100/hour
• Australia: $40-$170/hour
• Asia: $10-$50/hour

The cost mentioned above is determined based on a few factors, which include:

App Features

The features added to the loan app will determine its development cost. The more complex features added to the app, the higher the app development cost will be.

Development Tools And Technology Stack Used

The usage of advanced development techniques will increase the overall development cost. Also, the tech stack used by the company will impact the app development cost.

Development Company Size And Location

The larger the size of the development company will be, the higher the development cost it will have. Also, the cost depends upon the location of the company.

Customizations Added

If you wish to get a customized loan lending app, you need to pay higher development costs calculated based on the type of functionalities and customizations added to the app.

Type Of Loan App

The loan apps can be of different types, such as home loan apps, personal loan apps, commercial loans, or any other type of app. The development costs of these apps are different.

On average, the cost to develop a loan lending app falls between $48,000 and $84,000, which is reasonable. This estimate will be determined by the features you require and other development-related factors.

Real-Life Examples Of Popular Loan Lending Apps

Given below are some popular loan lending apps you must know:

KreditBee

It is one of the most popular loan apps, which allows users to borrow instant loans in small amounts. The app's user-friendly interface makes the loan process very easy and simple. Through this app, you can get loan approval in very little time.

Earnin'

It is one of the largest loan lending apps in the US. The app enables workers with bank accounts to get instant loans. The app has a smart tracking system that can detect your hourly income.

SoFi

The app provides various types of loans, including home, personal, student, and other types of loans. The app provides you with same-day approval on your loan request.

Hire a Loan Lending App Developer Today!

Are you searching for a tech partner who can develop a loan-lending mobile app for your business? Our development experts at RisingMax, a renowned banking & financial software development company, can help you. We have a team of expert loan lending app developers, Q/A testers, app designers, and UX/UI designers working with us, with years of lending app development expertise.

We have a streamlined app development process and ensure your app is delivered on time without delay. Our team will ensure 100% transparency throughout the process. All your ideas and suggestions will be considered at each phase.