Ten years ago, applying for a loan was a cumbersome process. However, in today’s digital age, things are different. Much of our lives have been impacted by technology, and financial services are no exception. The days of applicants having to wait in long lines for loan applications and visit the bank for several days to get the loan sanctioned are long gone.
Mobile app development companies are now easing the process, thanks to the incredible convergence of technology and mobile phones. There are various options for money lending in the current digital era, but the development of loan lending apps appears to be most promising.
The ease with which these P2P (peer-to-peer lending app) lending platforms allow anyone to easily obtain a loan has simplified everyone’s life. The revolutionary business strategy of loan lending apps focuses on quick cash lending without onerous paperwork. Customers and business owners have enthusiastically embraced this ground-breaking business strategy for all the right reasons.
While borrowers benefit from not having to make constant trips to the bank, lenders are better suited to keeping records and collecting payments through an automated system.
A report estimates that the market for digital lending platforms worldwide was worth $5.58 billion in 2019 and is expected to increase to $20.31 billion by 2027, at a CAGR of 16.7% between 2020 and 2027.
Let’s discuss the details of loan lending app development, including what they are, why they are becoming so popular, some essential features they need to have, and how much is loan lending app development cost..
What is a loan lending mobile app?
Loan lending apps can be thought of as a shared platform where loan seekers and money lenders can meet each other’s needs. Peer-to-peer lending apps for loans are expanding at an increasing rate every year. These apps give loan seekers 24/7 access to borrowing options without requiring them to physically visit a bank or lending center. These loan lending apps are a perfect solution for those who don’t have the time to visit a local bank to submit their loan application.
Both borrowers and lenders of capital are required to use the app, and neither group needs any real facilities, infrastructure, or workforce. Loan lending becomes simple with these apps, and all that is required is for both sides to agree on the same conditions before loan seekers can receive their money upfront.
Loan lending software is a fantastic way to boost your bottom line, whether your business is a startup or a conventional brick-and-mortar bank. It will let your business connect with clients in a variety of ways. On the other hand, not having a loan lending app can cause you to pass up important business possibilities that may ultimately have an influence on the company’s brand and growth.
How do money lending apps work?
Businesses that wish to develop a loan lending app to grow their business must first understand how it works. Both borrowers and lenders can use the app with ease. The instructions listed below will explain how to use the app:
- Both lenders and loan seekers must register on the app to use the loan lending software/platform.
- App users must then enter their personal information to verify their profile and add their previous bank account.
- The lender will likewise add their bank account in order to conduct financial transactions
- Then, borrowers can pick from one of the loan options that their preferred money lender has to offer. To do this, they must submit a loan request to the lender with a justification for seeking the loan.
- The lender will approve it if he deems it appropriate; else, he may reject it. By comparing the numerous advantages and interest rates, borrowers have a wide range of options to choose from.
- Both parties can complete the loan sectioning process online or in person by accepting all the terms and conditions. The funds will then be moved from the lender’s account to the borrower’s account.
Why are loan lending apps so much in demand?
The finest feature of all mobile apps is that they are accessible 24/7. A money lending app is essentially a bank in your pocket. With the help of loan lending apps, it’s quick, simple, and always possible to borrow money and make deposits. Money lending applications also offer users a variety of other advantages, including:
Apps for mobile money lending use a secure, encrypted network to transmit all customer information and financial transactions. All that users need to do is set up a strong password for their app accounts.
Different loan alternatives
The loans that money lending apps provide to their users range from payday loans to personal loans. Everybody needs a loan for a different reason, and loan lending app development effectively fulfills this user requirement.
Not all loan applications are submitted for a home or a new car because certain people need loans for covert purposes. A mobile loan app development can offer you extraordinary privacy and secrecy in this situation.
The commercial bank user experience includes transaction records in its entirety. Similarly, automated transaction records are created by mobile lending apps, and it is quite simple to access these records in the app. Users may also make payments on time because of better record management, which is further improved by prompt alerts and notifications sent to the users.
Major functionalities of loan lending apps
Certain important factors must be taken into account if you want to keep your loan application from blending in with the other products in the loan lending market. Even though every loan application is different, several traits are shared by all of them.
Try to keep the following factors in mind during your loan lending mobile app development process, regardless of the market or the issue it targets.
Although lending apps are excellent at eliminating the need for direct interaction with a clerk, the users will probably still need assistance. Additionally, having a live chat with your agents might be a terrific approach to handle these circumstances.
Easy loan calculation
Your lending app should provide a loan calculator. Don’t leave it to your users to calculate their loans because they are probably not experts in loan lending. Include a calculator to assist users in calculating loan-related data.
Customers should be able to grasp key information about their loans through your loan app, including the rate of interest, the monthly payment, and other pertinent details.
Make it simple for users to manage their documents in the app; they should be able to delete or upload documents as needed.
Due to their use of native device features and user interface (UI) design, custom mobile apps provide consumers with the greatest experience possible. Custom loan apps operate in a similar manner.
Be careful not to adopt a generic style. The top loan lending apps are beautifully designed with great attention to detail. Although it may seem insignificant, this has a significant impact on how your users view your brand.
Reports & analytics
Give administrators access to thorough reports with in-depth analysis to boost productivity. The total amount borrowed over the course of a specific duration of time and the total sum reclaimed over that same time can both be obtained by the administrator.
Customers will want a facility to view all outstanding and completed payments once a loan has been authorized. They should be able to quickly see how much debt is still owed.
Integration of cloud storage
The app will benefit greatly from the incorporation of cloud technology because there are many requirements for user data privacy. This function will prove quite helpful in protecting the privacy and security of the users’ data.
Convenient payment plans
Customers can use this crucial feature to limit their payments to the amount they really borrowed from the approved loan. They can control their net payables thanks to it.
You can automatically deduct loan EMIs from borrowers’ accounts by setting up this functionality. Additionally, this prevents lenders from skipping any loan payments.
[Also Read: Rising Popularity of Chatbot Banking App]
The cost of developing a loan lending app
The loan lending app development cost can range from $48,000 to $84,000, depending on the features you need. If you did your research and thoroughly considered off-the-shelf SDKs, your loan app’s development costs are probably going to decrease.
The cost of developing a mobile app for loan lending depends on a number of variables. Although the application development firm used to create a loan app has a significant impact on the development cost, you should also consider the following factors.
- The complexity of the app
- App platform
- The number of features included in it
- Application architecture
- The duration of the app’s development
To construct both a mobile app and the back end, from design to real delivery, keep in mind that you will require a full-stack loan lending app developer. The length of time it would take to develop your app may vary depending on many variables, including where you are in the app development process and the features you want.
Leverage the expertise of Appinventiv to develop a successful loan lending app
It will require more than a simple checklist of the suggestions made in this post to ensure the success of your money lending app. To assist you through the many phases of the mobile loan app development process, you will require a genuine app development partner.
Choose Appinventiv as your strategic partner. There is a lot to learn when it comes to developing a money lending app, so it is best to leave the technical details in the hands of professionals who specialize in fintech application development services.
We have a team of more than 100 digital fintech experts who follow a strict security-first approach in all their projects. We will work as your partner and take note of all your requirements to come up with a solution that meets your objectives.
Our Fintech solutions include KYC platforms, fraud prevention mechanisms, intuitive payment systems, lending and mortgage software, and more. We follow all international laws and regulations while we design mobile applications.
Consumers of today, spoiled by the on-demand economy and hampered by constraints associated with the pandemic, yearn for more services that can be accessed from the comfort of their homes. For this reason, many lenders are finding it necessary to develop fintech apps, specifically a loan app that enables on-demand money lending.
You now possess the most potent tool in the world with everything we just mentioned: information. After reading this blog, you will be able to create a detailed action plan for your loan lending app and learn how to start a loan business online.
Q. Is using an app for a loan safe?
A. Fraud can be avoided by downloading a loan lending app from a reputable site, such as the Google Play Store. However, you must be certain about the loan application with personal checks. To apply for loans, you must not install quick lending apps that have not been licensed by regulatory bodies like the RBI.
Q. Can I apply for a loan without using the loan lending app?
A. You must download the app to your smartphone in order to submit a loan application.
Q. Can I register for a loan app even if I don’t need money right away?
A. You should, definitely. Opportunities and emergencies do not give notice beforehand. You might need to handle a family member’s medical emergency, make an unexpected transaction, or even reap the benefits of an online flash sale. If you create a profile in advance, it will be considerably simpler to arrange a quick loan when you need one.
Q. How do applications for money lending operate?
A. As equal parties, lenders and borrowers can bargain directly with each other over loan terms, including interest rates and repayment schedules. The platform accepts the borrower’s loan application after performing a security check.
Q. How long will the development of my loan lending app take?
A. Although it takes 3–4 months to establish a loan app, a minimum viable product (MVP) can be created in just one month if necessary. It takes longer because the final version involves more programming work. The app will be provided to you on time once the development task is done and QA has given its approval.
Q. What is the cost of developing a loan lending app?
A. The loan lending app development cost can range from $48,000 to $84,000, depending on the features you need.