Last Updated on November 4, 2022
The technical world has made us dependent on mobile applications to the extent that we order everything online, even on-demand services. These apps have not only made our lives easy but have helped us sort out our ways of doing things. Things are more organized and transactions are more timely.
Just like most other apps that have eased out a lot of things for us, loan lending apps have also come to the rescue of those who are looking for loan approval.
Have you ever faced the hassle of getting in long queues of loan approvals and several days of going to the bank for the same? Are you aware of how long the procedure is of getting a loan approved face to face? Well, several companies have come to the rescue and have developed mobile applications that wash out the need of going to the banks for borrowing money. The same can be done through these apps, which have the ability to check the credit status of the borrower and check his eligibility for a loan.
What is a Loan Lending Mobile App?
A loan lending mobile app allows you to borrow money from any bank in your country at an interest rate that has been set by them. These apps allow you to compare the interest rates and see which one suits you best and the one that can lend you money for a specific period can be contacted.
This app works like a credit card allowing users to get an instant loan. All a user has to do is install one of these apps and register themselves on it. Then they have to check their eligibility and add their personal and bank details. These applications have become one of the most reliable ones as people can check their credibility and their credit score with the app and see how much loan amount they are eligible for. It reduces the time spent on going to the banks, standing in queues, and talking to the bank official over the counter.
Why do people take loans? There might be different requirements of different people, the most common being the following:
- For buying new vehicles.
- For paying off their bills.
- For emergency services like hospital bills, etc.
- For paying their tuition fees, which might cost a bomb otherwise.
- For consolidating debt.
- For investment brokers.
- To purchase venture capital.
- For funding the start-up organizations.
Types of Loan Lending Mobile Applications
All loan apps will be different when it comes to the types of loans they offer to their borrowers. Each person’s need is different, so is the lending capacity of each app. So how can one plan on lending their money? It is simple, each app looks at the financial situation of any borrower before lending them money. Take a look at some types of loans:
- Student loans
- Personal loans
- Startup or small business loans
- Mortgages or home loans
- Car loans
Apart from all these types, there are apps that also offer personal loans to users, a service that can be availed at any time. This can be for any purpose including quick home fixes or any other emergencies in that matter.
Secondly, there are apps that can be categorized based on the lenders. Now, there are three types of entities that provide loans via these apps. Following is the categorization:
- P2P (peer to peer) lending application
- Banks and other financial institutions that we already know about
- Credit unions
Thirdly, the last categorization of these apps can be done according to the technology stack. You might have heard of cryptocurrency, including the likes of bitcoin, Litecoin, or Ether. The following technologies can better classify this category of money lending apps:
- Artificial Intelligence (AI) and machine learning
- Smart contracts and blockchain development
- Big data
How Do Loan Lending Mobile Apps Work?
Widening the horizon for the borrowers, the money lending apps have a very simple and gradual way of working. One does not have to go through a lot of steps or fill in lengthy forms to get a loan approved. All the work is done by the app itself. All you have to do is register yourself on the app and convert your payment into a loan. A user can then link their bank account to their loan accounts.
Following are the two steps involved in a loan lending app:
After a user installs a loan lending app from the app store, they will land on the home page of the app. The first step for the borrowers is to register themselves with the app and make their separate accounts. They have to fill in certain details including their contact numbers, residence address, employment history, education, etc. After all, this is done, they can look at the various categories of loans that they can get through the app. Also, they can also tally the interest rate on the amount of money they are willing to borrow. After comparing the interest rates and the duration they want to borrow the money for, the users can select a loan.
2. Linking their bank accounts
A borrower should link his bank account with the app so that the amount is deducted automatically from their app every month. This helps them in avoiding any sort of issues like loan repayment or skipping loan dates leading to a late fee. The app, however, will send notifications to the users about their payment details and the payment dates.
Why Invest in Loan lending app development?
The loan lending market will gradually see a boom this year and the Statista report suggests that the transaction value in the marketplace lending segment will go up to USD 20,391.5 million this year alone. This market size will increase to USD 24,914 by 2024.
Take a look at the graphical representation of the same:
Stats for Number of Loans from 2017 to 2024
This clearly states the demand for these apps and that the growth seen in the coming years is going to be exponential. However, we have very limited loan lending applications in the app world as of now. Therefore, it is best to invest your money and time in getting one developed to get into the competition and standing out of the crowd.
It is prominent that mobile loan lending apps are on a steady rise. It was quite evident in the research that took place in the U.S. in 2015. The result of that research stated that 31 percent of the respondents wanted to get an option of such apps as it would make the money borrowing procedure simple and quick. These are also quite popular because they provide solutions to end-to-end problems like loan eligibility, interest rates, checking credibility, application approval, documentation, etc.
What are the benefits of a loan lending mobile app?
A loan lending app has undoubtedly removed several hurdles from the way of the borrowers. They have become so much at ease with this convenient way of getting money from the comfort of their home, that they would consider this anytime they want credit from the banks or loan lending organizations. These apps do not only benefit the borrowers but offer a big advantage to the businesses and banks as well. They can achieve their goals even without having to come into contact with the borrowers.
Advantages derived by the lenders
1. Cuts operational costs
The loan lenders are not obliged to have a proper office set up or entertain their borrowers, therefore, they can cut down on the operational costs. They can operate with minimum infrastructure even in the smallest of places.
2. Speedy KYC procedures
The lenders do not require the borrowers to come in person every day with their documents. These apps allow the borrowers to upload all their original documents’ scan copies on the app which can be downloaded by the lenders.
3. Multiple customers
These apps allow lenders and businesses to serve more than a single customer at a time. One is not obliged to only one borrower when he can get in touch with several of them simultaneously.
4. Maximum reach
A bank might not be in the reach of people in rural areas. The lean lending apps help in bridging the gap between the lender and the borrower and allow them to strike a deal even from two opposite ends of the world. Therefore, it can be rightly said that these apps are scalable and can help people to come into contact from any place.
5. Artificial intelligence
AI helps in improving the lending products: Since every transaction is recorded and everything is managed on the app with the help of mobile technologies, it can help improve the efficiency of the lenders.
6. Easy browsing
The lenders can go through all the applications at the same time and get to know how many people have applied for a loan with them.
Advantages of these apps to the borrowers
1. Simple procedure
The borrowers simply have to fill up the loan application form to get a loan and submit it with the app. The lenders will take a look at it and approve instantly.
2. Discreet process
The borrowers can browse through the internet or the app store and install the app of their choice. The ratings of the apps and the reviews by the users will help them make a better decision.
3. Managing the applications
Borrowers can keep a track of their application and get the approval online itself. This saves them all the trips to the banks.
All transactions made through this platform are secured and all details encrypted with the app. Users can create a strong password for their account and keep is safe without sharing it with anyone at all.
5. Loan options
Since it is all online and visible on a single screen, the borrowers can take a look at the kind of loan options they are eligible for and compare those to select the best option.
All the transactions made through the app and all the payments made by the borrowers are logged into the app. One can access the log whenever there is a need to do it.
7. In-app messaging
The borrowers and lenders can get in touch with each other on the platform and discuss about the loans online. This will help the borrowers to make better decisions about the loan.
8. Less paperwork
These apps involve little or no paperwork at all, as all documents are submitted online. The users are required to upload scanned copies of all their necessary documents during the time of registration, which also makes it easy for the lenders to give loans.
All lenders who have their apps are recognized and earn the trust of the borrowers. If you are skeptical about borrowing money from a company outside, you can always read the reviews and check ratings of these apps before borrowing money from them.
Top Loan Lending Mobile Apps Across The World
If you are looking for an app that provides you a loan in merely a few hours, then this one fits the bill perfectly for you. This is a platform that provides short term personal loans to professionals who are salaried and do a job for their living. The loan is sanctioned to them within five hours after application. Take a look at the steps to be followed in the app:
- Installation of the app on your device
- An instant loan can be approved in less than a minute
- The borrower has to then select on the EMI option he wishes to pursue
- Submit all KYC documents
- Validate your application by e-signing it
- The money will reflect in your account within 5 hours
Another app that disburses fast loans to young salaried professionals, this app is just like PaySense when it comes to offering loans. This one too offers short term personal loans. A look at the steps to be followed:
- Sign up with the help of any of your social media profiles including Gmail or Facebook.
- Upload your basic documents on the app.
- Get to you your eligibility for the app within two hours of application.
- Log into your account and select the amount of loan.
- The amount will reflect in your bank account within minutes.
Offering cash on demand, this one is the first of its kind offering credit to self-employed people along with salaried professionals. The minimum age requirement for a borrower is 23 years and he should be earning a minimum of 20 k per month. Take a look at the procedure to be followed by the borrowers:
- Download and install the app on your phone.
- Register yourself with the app and make your personal account.
- Complete the KYC documentation.
- You can then begin to use the app with a single tap on your device screen. It can be used either as cash or a card.
- You can convert the loan amount into flexible EMIs.
- It will be credited to your bank account within minutes after application.
Features that Users Want in a Loan Lending App as per a Survey
Basic Features in Money Lending App
User Panel Features
- Registration/Login with social or email id
- Apply for Loans
- Set payback period
- EMI, Interest calculation
- Payment schedule and billing
- View EMIs paid/unpaid
- Withdraw money
- Connect bank accounts
- Transfer money to a bank account
- Discount and offers on credit cards usage
- Reward points
- Variety loans
- Online chat and call support
Admin Panel Features
- Login via email id
- 2 Factor authentication
- Manage rewards
- Manage Discount and offers
- Manage Profile approval
- Manage customer KYC approval
- Manage customer credit limits and requests
- Manage Users
- CMS Integration
- Manage Bank Partner Management
- Manage Profile
- Loan Management
Advance Features to Include in Loan Lending App
1. Push notifications
To get the latest activities on the app and the remaining amount of your EMIs, this feature works best. Also, it helps the users get information about the latest offers and discounts being run by the loan lending application.
2. Online Support
These apps have an online support team that is readily available to talk to the users and extract information about their loans. They can instantly tell the users about their latest transactions and the remaining loan amount.
3. Bank Partner Management
This feature allows the app to function along with the collaborated banks.
4. Admin Dashboard
The dashboard allows the admin to have a look at the real-time analytics of the app. One can clearly see all the activities that are taking place on the app and the transactions that are happening between the lenders and the borrowers or the banks and the borrowers. It also includes important information like the total amount of money lent, total money earned through interest, total users on an app, etc.
5. Integrated cloud storage
Users’ privacy and data are of utmost importance and it is the responsibility of the application owners to keep it secure and confidential. This can only be done by integrating cloud storage on the app.
This is an integrated support system, who the users can call anytime and get answers to their queries. This might sound similar to human support, however, chatbots all maintained by machines, and machines are used to answer all queries and questions of the users.
7. Loan calculator
Now the users will not have to take out a calculator to calculate the amount of interest they would have to pay on the loan amount for a specific period of time. In fact, this work is also managed by the app which shows all the options of loans available for a user.
The real-time reporting helps the app owners know the performance of their app. This information can help them in adding or removing certain features depending upon the requirements of the app users.
9. Supports Multiple Languages and Currencies
This option lets users connect with the app support or read the options on the app in the language of their choice. Also, if one wants to apply for a loan in some other country, he can opt for the option and can choose the currency from the options available under this feature.
10. CMS integration
With the integration of this feature, the app owners can manage the content on the digital money lending application.
Things to consider while developing a loan lending app
While there are a lot of things that should be taken care of while developing a loan lending application, you need to be extra careful all along. You have to build a team that fully supports the app and devotes their time to the functioning of the app. There is also a requirement of different teams to build an app, such as:
- Financial adviser to take care of the government and regulatory terms and conditions of a country.
- Legal adviser to advise you over the financial matters of the app.
- Public Relations company to help you promote your app through various platforms and help it earn recognition amongst users.
- Banking partner to lend the loan amount to your users.
- Marketing company for achieving success among your target users.
Tech stack required for developing loan lending mobile app
- Framework: Java 8 +, Lagom, Play, Akka, Spring, Slick, Spring Boot, JSON
- Mobile Platforms: React Native, Android, iOS
- Web Services: SOAP, REST
- Programming Language: JSON, Core JAVA
- Database: MongoDB, PostgreSQL
Team structure required for developing loan lending mobile app
Any project’s success is derived from the efforts of the team that have gone in its development. An app owner needs to hire the best team from either one of the app development agencies or freelance developers. The best way is to examine the expertise of the developers you want to hire. Take a look at the team you need to develop a loan lending app:
- Project manager
- Front end developer
- Back end developer
- iOS developer
- Android developer
- Requirement Analyst
- UI/UX Designers
- QA Specialist
How much does it cost to develop a loan lending mobile app?
There are several factors that affect the pricing of a loan lending application. Although the mobile app development team that is hired to build the app play a significant role in deciding the price of an app, there are several factors such as:
- The complexity of the app
- Number of features integrated into it
- Design of the application
- Geographical location
- Time taken to develop the app
The pricing of the app might vary from region to region. Take a look at the estimated cost in developing an app region wise:
- North America: USD 50 – USD 250/hour
- South America: USD 20 – USD 75/hour
- Western Europe: USD 50 – USD 200/hour
- Eastern Europe: USD 20 – USD 100/hour
- Australia: USD 40 – USD 170/hour
- Asia: USD 10 – USD 50/hour
The money lending apps are doing really well these days and with a dearth of these apps, there are chances for startups to invest their money into it. For those who are planning to get one such app developed for themselves, you might just stand a chance to outshine the rest and win the competition as people are slowly navigating from bank loans to easily accessible loans via these apps. All you have to do is hire the perfect team for the development of the app, that will listen to your idea and conceptualize it, implementing the latest technology and features.