Suppose, if you would like to use for a loan today, what would you are doing first? most likely you’ll navigate through Google results to seek out the simplest loan lenders in your locality. Or, look out for a Mobile loan lending app that serves your purpose.
Well, with the arrival of smart technology and mobile apps – the whole loan lending process from application to disbursement – has become paperless, simple and fast for today’s tech-savvy generation.
Most of the companies are wanting to participate within the loan lending app development market to possess their justifiable share during this growing industry. But, the way to build a reliable money lending app solution?
Businesses face this question once they look to show their app idea into reality. to assist companies overcome this challenge, the article will provide a comprehensive overview of the loan lending mobile app development process. Read on:
Table of Content
- What Is Loan Lending App and the way Does It Work?
- Benefits of Loan Lending Apps for Businesses and Customers
- US Market Trends for Loan Lending
- Key Features of Loan Lending Mobile App
- How to Build a Loan Lending Mobile App?
- Key Points to think about While Building A Money Lending App
- How Much Does It Cost to create A Loan Lending App?
- Factors That Affect the value of Loan Lending App
Now, let’s begin with discussing each of them intimately .
What are Loan Lending App and the way Does It Work?
A loan lending app offers around the clock borrowing facility to loan seekers with none got to visit a physical bank branch or loan centre. These money lending apps are an excellent alternative for people, not having enough time to go to a bank branch to urge the application processed.
Wondering how these apps work?
Well, money lending apps works on the principle of peer-to-peer (P2P) lending. What this suggests is that the method of issuing and receiving loans is executed by individuals without the involvement of any financial organization , as an intermediary. you’ll participate during a P2P lending app or platform both as a borrower or lender. Money lending app service providers host these P2P platforms. Majority of loans you receive via these online lending apps execute during a P2P manner. Although in some cases, lending companies also participate during this process to grant individual loans to buyers via the app at specific rates.
Intermediaries or companies take the help of an expert mobile app development company for building these personal lending apps. And, by building such apps, they receive alittle percentage of commission on each loan credit and borrow transaction
US Market Trends for Loan Lending
The usage of loan lending apps is growing exponentially within the US. consistent with a Statista, 48% per cent of individuals within the US are able to use a money lending app to see the quantity of loan they will get via a specific online lender.
What Loan Lending App Features Users Value Most
Benefits of Loan lending Apps for Businesses and Customers
Boost Profits: As a business owner, you’ll use various app monetization strategies like in-app advertisements, commission, etc. to reap good profits.
Higher ROI: By hiring an expert loan lending app development company, you’ll map a solid development and monetization strategy to receive higher ROI on your app spends.
Customer Engagement: quite 2 billion have access to a smartphone today. By building a loan lending app, you’ll increase customer engagement by delivering game-changing personal lending services.
No Costly Middleman: Loan lending apps have zero to minimal involvement of monetary intermediaries or banks with heavy processing fees. Customer’s applications process quickly and in an efficient manner without the necessity of guarantors.
Low-Interest Rate: Banks typically charge high-interest rates. With loan lending apps, customers with good credit history can get attractive loan offers at minimum interest’s rates.
Paperless Process: The authorization process is totally paperless and digital which saves customers valuable time.
Faster Approval: The loan eligibility, document verification, approval, and disbursement process is quicker in money lending apps for patrons .
Robust Security: most loan lending apps offer multiple sorts of loans like personal loans, payday loans, commercial loans, etc. this is often pretty handy for patrons with different needs.
Key Features of Loan Lending Mobile App
The essential features that you simply must add in your money lending mobile app are listed below. Don’t forget to feature important features like EMI calculation, auto payments, etc in your app. this may ensure seamless user experience for your app users.
User Side Features
Registration/Login: Users can sign-up on the app by providing their personal and financial details. Once registration gets complete, they will enter the app using valid login credentials.
Apply for Loan: Users can apply for a selected loan amount using this feature. they need to provide necessary documents for loan processing and disbursement via the app itself.
Calculate EMI/Interest: Users can calculate the monthly EMI along side interest for the applied loan tenure using this feature.
Payback Adjustment: Users can adjust the loan period or timeline they need to use using this feature.
Transaction History: Users can check details of their past loans by using this feature.
Help & Support: Users can request for loan related information or assistance with this feature .
Notifications: Users can receive timely notifications about their upcoming loan instalments, new offers, etc. by enabling this feature .
Withdraw Payment: Users can transfer the loan amount to their specific checking account using this feature .
Admin Side Features
Intuitive Dashboard: Admin can get 360-degree information like total users, total money lent, total earnings, etc. about the app using this feature .
Manage Users: Admin can manage various users with permissions like add, delete, modify, etc.
Approve KYC: Admin can delegate the system KYC request to registered bank partners for paperless KYC approval.
Manage Lending Partners: Admin can manage different banking partner and their access rights using this feature.
Loan Management: Admin can verify and update rate of interest and terms and conditions (T&C) for various loan categories.
Security Management: Admin can manage various security aspects of the loan lending app to stop any data leakage or unauthorized access.
Reporting & Analytics: This feature provides real-time updates about important activities running on the app to admin. this will help the lending app service provider take important decisions to enhance app performance.
Cloud Integration: Integration with cloud services can help secure user data and ensure privacy.
Automatic Repayments: By fixing this functionality, you’ll deduct loan EMIs from borrowers account automatically. This also saves lenders from missing any loan instalments.
How to Build a Loan Lending Mobile App?
Conceptualization: Everything starts with an excellent idea. So, confirm you’ve got a solid app idea, strategy and concept in mind. Decide the sort of loan app you would like to create along side features. Perform in-depth marketing research and competitor analysis to spot the market gaps and customer pain points. this may assist you identify a singular app strategy and profit-making opportunities.
App Documentation: Partner an expert Android or iOS app development company. they’re going to assist you in validating your app idea and creating a solid implementation strategy along side documentation.
Building an MVP: Request you loan lending app development partner to create a minimum viable product with minimum essential features. This helps you validate your app idea and acquire user feedback with spending an excessive amount of money.
Design & Development: choose a clean, simple and minimalistic app design that customers fall crazy with after first interaction. Ask your app development partner to return up with varied UI/UX wireframes, high-level design docs, etc. to settle on the simplest one for your app. Further, during the event stage take regular updates & provide suggestions to your app developers to remain in sync with overall project progress.
Testing: Once development gets done, hire an expert QA team to perform quality testing to trace any bugs or functionality errors in your app. this may ensure a bug-free outcome .
Launch: After app testing, its time to launch the app on your targeted platforms. Prepare a strong strategy for app launch along side its promotion.
Support & Maintenance: hunt down support from your dedicated development team to supply support for any technical issues as per contract. Remember, building an app is half job done, to stay it’s relevant and error-free, perform proper support & maintenance activities.
Key Points to think about While Building A Money Lending App
Security: Robust security is that the primal requirement of any money lending app. Ask your app development partner to use comprehensive app security measures like HTTP/SSL encryption, secure PIN/passwords, strong encryption methods, etc. to avoid any quite security loopholes. This helps you secure important customer financial data and maintain company reputation.
Intuitive UI/UX: Delivering seamless user experience is vital to higher app engagement and user retention. Hire an expert UI/UX design team to create an app interface so users can access important app features quickly and with minimum hassle. choose a minimalist design without overloading your app with heavy pictures or icons. Build an MVP first and check app UI from the user’s viewpoint.
Trust & Credibility: Trust and credibility become important once you decide to build an app for loan lending. If customers don’t accept your business as a reputed and trustworthy financial entity they won’t use your app. So, confirm you partner reputed financial entities, lawyers or financial advisors before launching your app to enhance overall reputation.
Low-Interest Rates: Any digital-savvy customer use a lending app to urge attractive loan offers at low-interest rates. Keep this thing in mind and partner with multiple lenders to supply loan EMI facility at lower rates.
Legal Compliance: To run your loan lending app business with none legal nightmares, partner skilled and experienced lawyers and financial experts. Sich people will ease out the method of P2P lending via your app/platform. this may also assist you avoid breaking any laws across multiple jurisdictions where you use .
How Much Does It Cost to create A Loan Lending App?
The overall cost to create a loan lending app with basic features can cost between $20,000 to $50,000. However, building a complicated money lending app like MoneyTap can cost you $40,000 to $100,000 approximately. Remember, the ultimate cost of your app will depend on a spread of things like app design, features, targeted platforms, developer experience, developer location, etc.
Factors that Affect the value of Loan Lending App
There are a spread of the factors got to consider app development partner consider before quoting the ultimate price for building your loan lending app.
Developer Location: it’s the foremost crucial aspect thanks to which loan lending app final cost fluctuates. you want to know that developers in North America cost high for building a money lending app compared to Asian countries like India. check out the chart below for more details:
Developer Experience: If you’re employed with an experienced iOS or Android app development company, it’ll obviously cost you more compared to startup or freelance developers.
App Design: Design of the app is what helps you capture eyeballs and increase customer engagement for your app. But, remember the ultimate cost of your app can differ substantially with increase in UI/UX complexity.
App Features: If you build an easy loan lending app with basic features, it’ll cost you less in most cases. However, as you increase or request complex features in your app, the value will increase side by side too.
Target Platforms: Android vs iOS – this is often one dilemma which you’ve got to deal with before building an app. With this, you want to know that building a hybrid app (launch on both Android and iOS platforms) compared to native one can cost you more.
‘RP infosoft is a reputed mobile app & web development company based in Ahmedabad, India since 2016.’