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. If you are thinking about how to build a loan app, then this blog will help you learn everything about the app from features to cost.
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 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.
Loan Lending Market Statistics
- In 2022, the global digital lending platform market was valued at USD 7.04 billion.
- By 2030, it is estimated that the global FinTech lending market will have grown to $4,957.16 billion, with a projected compound annual growth rate (CAGR) of 27.4% between 2021 and 2030.
- In 2021, the mortgage lending market was valued at $11,487.23 billion, as reported. The market is expected to experience a compound annual growth rate (CAGR) of 9.5% between 2022 and 2031 and is anticipated to achieve a value of $27,509.24 billion by 2031.
- In 2021, the global P2P lending market was valued at USD 82,300 million. It is projected to grow at a compound annual growth rate (CAGR) of 29.1%, reaching USD 804,200 million by 2030.
Types of Loan Lending Mobile Applications
All loan apps will be different regarding the types of loans they offer to their borrowers. Each person’s need is different, and 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.
Well, depending on the loan type, there exist five types of money lending apps one should consider while developing digital solutions.
1. Payday Loans App
Also known as small loan apps or cash advance applications, these urgent loan apps allow borrowers to take a small amount from their next paycheck before they receive it. Besides, some short-term cash loan apps assist borrowers with some cash in an emergency.
2. Quick Loans App
Also known as an instant money app, such apps provide users with advance cash that borrowers can repay on their next payday. Many instant loan apps charge no extra interest to receive an advance. But, they may demand a fee for speedy funds delivery, while standard delivery usually takes several days.
3. Home Loans App
Those who want to lend a helping hand to people with mortgages may develop home loan apps. If you invest in user-friendly fintech software development, you can witness it expanding worldwide seamlessly.
4. Student Loans App
Targeting a specific audience that’s mainly in need of meeting their educational expenses, student loan apps are usually picked. It’s a widespread online loan app that’s usually in demand.
5. Vehicle Loans App
You can help the audience who needs more cash to buy vehicles on the go. You can charge them an interest amount and lend them a vehicle loan.
6. Personal Loan Mobile App
These apps let the borrowers apply for a loan without visiting any bank. Moreover, people take personal loans to consolidate their debt, finance a large purchase, or pay an outstanding bill.
7. Business Loan App
These mobile apps are helpful, especially for startups and businesses. You can bring business loan apps to the market to help individuals build or set up businesses.
8. P2P Loan App
Another type of Fintech app, a peer-to-peer loan lending app, is built to ease the lending process. It can be met by connecting the lender and borrower without banks, mediators, and credit unions.
9. Bank Loan App
These are not the new loan apps, as they follow traditional lending methods. The banks ask for a specific guarantee in exchange for lending loans.
10. Credit Unions App
Typically such apps offer lower interest rates on loans. Individuals will find such apps easier to get a loan than larger banks.
Latest Digital Lending Trends
1. AI Cloud
While improving almost every industry, AI also enhances the fintech world. It automates the lending processes for loan teams and customers, diminishing manual jobs.
The essential digital lending trend, the cloud holds the caliber to help financial organizations deliver services, store information, document management, and online data process seamlessly.
3. Open Banking
With an expected boost of around $75.7 billion by 2028, the global open banking trend helps consumers manage their routine financial decisions using the details about their cash flows across various accounts. It’s the secure way to manage, move, and make the best of your finances.
4. Neo Banking
The number of people holding an account in Neo bank will reach 39.1 million by 2025, about 20 million higher than what was caught in 2021. Neo banks are similar to traditional banks but don’t have any physical existence like other banks.
5. RegTech (Regulatory Technology)
A type of technology that helps keep an eye on regulatory compliance, RegTech addresses the issues that need to follow the rules. Next, such software automates tedious procedures, monitors data security, and alerts bankers and users about fraud.
Based on AI data analysis algorithms, Robo-advisers put forth the best investment options for investors, analyze colossal data volume, and adjust to the transforming environment comparatively quicker than human advisors.
By 2030, the global blockchain market will expand to $1.59 trillion, around 143 times more. This digital lending technology locates the issues affecting the financial industry, especially efficiency, and security. It documents every transaction in a unique block linked to the earlier blocks of networks.
8. Decentralized Finance (DeFi)
In 2023, one of the new growing fintech trends, decentralized finance, is open source that uses self-executing smart contracts for all the management. It eases the interaction of multiple blockchains with one another, taking the cryptocurrency industry to a level ahead of a broader audience.
9. Smart Contract
A unique Fintech development, smart contracts manage and control the execution of the agreements made between a buyer and seller. The agreement demands a virtual signature using cryptographic keys, so virtual transactions will not need papers or attorneys.
10. Biometric Authentication
By 2027, the global biometric market will grow from $42.9 billion in 2022 to about $83 billion. While gaining access to financial details and money, around 81% of customers seek out organizations offering a quick identity verification or authentication experience. Witnessing this, fintech businesses and companies pay attention to such a factor.
In 2016, from $4.91 billion to around $11.94 billion in 2022, the gamification market has grown in the past five years. Through gamification, businesses have boosted their brand loyalty, revenue, and other benefits. Its strategy helps online banking apps engage customers, sell their games, and provide them with ownership sense.
12. Voice Payments
By 2025, voice assistance will reach about 8.4 billion globally compared to humans. Integrating voice assistants with fintech businesses is likely to increase the use of digital assistants. With voice biometrics, the user data will stay protected, and the owner can buy items, check his balance through voice commands, and perform more jobs simultaneously. In fact, some Fintech businesses are devising to counsel their clients on complex issues in place of managers, chatbots, and contact center agents.
13. Payment Gateways
Over 55% of US customers use credit cards for their online purchases, and 52% and more choose debit cards. So, to drive these transactions, fintech brands should choose a payment gateway to connect clients and retailers to enable efficient bank-to-bank transactions. By 2025, the payment gateway market valuation will reach $42.9 billion.
14. BNPL (Buy Now Pay Later)
By 2026, the BNPL trend is expected to be picked for deals worth $576 billion globally and around $120 billion in 2021. The fields relevant to payments should include BNPL in their businesses. Short-term financing permits future prices of goods and services bought now.
This fintech trend is already in use by around 45% of customers for performing international financial transfers, and over 52% believe it to be a legal option. The increasing adoption of cryptocurrency by worldwide businesses is boosting the value of such assets.
Why Are Loan Lending Apps So Much In Demand?
1. Flexible Amounts and pay-back time
Borrowers can reap the advantage of negotiating the borrowed amount and the payback time of the loan. This lets the borrowers choose the payback amount and time at their convenience.
2. Lower Interest Rates
Mostly, the interest rates are lower comparatively. It’s because of the online nature of the platform, lower down payments, and competition between various money-lending apps.
3. Hassle-Free Processing
The best part about an online loan app is that individuals can invest and borrow money on the go without going through a lengthy process. They can undergo short background checks, convince lenders of their loan request, or sign paperwork. Alternatively, a borrower can easily apply for a loan from an investor, go through the related background checks, and get money directly into their account.
4. Easily Accessible
Borrowers do not need to visit banks like traditional money lending processes, and they can do everything while lounging on their couch at home. Likewise, investors can also go through a seamless investment process online.
5. Maximum Security
An easy money loan app uses an encrypted, secure network to transmit complete customer details and financial transactions. Users need to set strong passwords for their application accounts.
Only some loan applications are submitted for a vehicle or home, as specific individuals need loans for personal reasons (they can’t open up). Loan apps for iOS and Android can provide exceptional secrecy and privacy in this case.
7. Various Loan Alternatives
A genuine loan app offers users a wide range of loan services, from payday loans and advance loans to vehicle loans. The need for a loan varies from person to person, and a money-lending app efficiently meets every need.
8. Improved Logs
Loan lending apps create automated transactions that are easily accessible. It becomes easy for users to make timely payments with better record management, leading to enhanced prompt alerts and notifications that are sent to users.
How Do Money-Lending Apps Work?
1. The loan lending app users, borrowers, and lenders must download and register to use the loan lending software.
2. They must enter their personal information for their profile verification and add their previous bank accounts.
3. Likewise, the lenders will add their bank account details to conduct financial transactions.
4. The borrowers can choose from the loan options they want their lender to offer. For this, they must submit a loan request to the money lender with a reason for seeking the loan.
5. If the lender finds the justification apt, he will approve or reject it.
6. Both parties then complete the process of loan sectioning online or even in the person accepting every term and condition.
7. The funds will move from the lender’s account to the borrower’s.
What Are the Benefits of A Loan Lending Mobile App?
A loan lending app has undoubtedly removed several hurdles from the way of 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 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?
The cost of developing a loan lending app can vary significantly based on several factors, including the complexity of the app, the platform it’s developed for (iOS, Android, or both), the UI/UX design, the number of features included, the application architecture, and the duration of the app’s development.
Though the average loan lending app development cost can range from $48,000 to $84,000. This estimate is based on the features you need and other development factors. Hiring an experienced app development company is important for making a strong and useful financial app that fits your business needs well.
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 money lending 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.