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How Can You Create a Money Lending App? A Detailed and Simple To the Point Guide

How Can You Create a Money Lending App? A Detailed and Simple To the Point Guide

Today, you can easily borrow money from money-lending and finance apps and can also share money with your peers. This has revolutionized the way most of us and numerous businesses conduct our day-to-day financial transactions, which is why it is crucial that we invest in the development of banking and financial applications.

But, if you have never invested in application development or have never developed one yourself, how do you get started with building apps? In this article, we have listed how you can create a money lending app and also discuss the expected costs to prepare you for the investment. So, without further ado, jump right into this article and get started with discussing more about money lending apps and their complete development process.

Why Should I Create a Money Lending App and What Is It All About?

If you have experienced the olden days when we had to stand in long queues for simple money transactions and banking services, you know how hectic and time-consuming it can be! But, the alternatives, money lending apps and banking apps, are much more relaxing and quite simple; and, they also help boost user experience and ensure that you can easily complete your financial needs without much complications.

But, as an investor or someone looking to create a money lending app, the first and foremost question that arises is – why should you invest in the money lending app industry? Well, according to statistics, the global lending market is expected to hit a valuation of USD 8.2 billion by 2028; and, this value is a clever indication of our increasing reliance on money-lending and financial apps for performing simple banking and finance transactions.

You can also think of this – after the launch of online loan platforms and peer-to-peer transaction apps, we are pretty sure that you would have rarely visited your bank or contacted your nearest financial institution. As you keep shifting to these platforms and applications, how do you expect others to keep visiting traditional banks and financial institutions? This is why we recommend you create a money lending app as soon as possible; in case you are not aware of the technical skills needed or the possible solutions, we recommend you partner with a professional mobile app development company in India.

Why Are Money Lending and Peer-To-Peer Payment Apps So Popular?

Before you jump right into how you can create a money lending app, it is important that you understand the benefits that these apps bring. Moreover, since there are two sides to the same coin, we also need to consider the potential disadvantages of money lending apps; this will help you better understand the problems you might face in the future and will ensure that you can formulate a solution at the earliest!

Advantages of Money Lending Apps and Peer-To-Peer Payment Platforms

Advantages of Money Lending Apps

In this section, we list the top advantages of money lending apps and peer-to-peer platforms that users can benefit from; this will help you understand why you should get into finance app development and will also help you identify your target audience.

1.   Eliminates the Presence of Expensive Intermediaries

The biggest advantage of these apps is that they help eliminate the presence of expensive intermediaries like banks and ensure that we do not have to pay for enjoying simple banking services. Since the complete verification and transaction processes are held online, you do not need to visit any bank or financial institution and can enjoy their services in the comfort of your home. But, what does this mean for your app’s users and people like us? Well, it means that you do not need to pay huge fees to enjoy banking services and only need to pay a minimal charge.

2.   Mutual Outlining of Loan Conditions by Both the Creditor and Borrower

To ensure that your app caters to all users in the best possible way, we recommend you build a Fintech mobile app that allows both creditors and borrowers to set terms for the loan or the bargain. Some common conditions that you can allow creditors and borrowers to determine and set can include – the sum, loan deadline, and applicable interest rate. This will also help you ensure that your app functions based on multiple conditions revolving around the borrower’s credit score and status of existing loans (if any).

3.   In-Depth Inspections and Examinations

Since the complete money lending processing happens online, borrowers are required to upload numerous documents like their passports for identity and address verifications. So, all examinations and inspections that are conducted are quite in-depth and help contribute to a higher level of transparency and ensuring that borrowers have revealed important details about themselves.

4.   Minimal Interest Rates

Other than the added user experience offered by money lending apps, another benefit is that the interest rate they offer is quite nominal and lower than that offered by traditional banks and financial institutions; this is mostly because most of these online apps do not need to invest in huge amounts of resources and do not need to have a large development team in place. This is why we recommend you hire mobile app developers with great professional experience to ensure that all app and business needs are handled and your app is developed successfully!

Disadvantages of Money Lending Apps and Peer-To-Peer Payment Platforms

Before you build a peer-to-peer payment app or a money lending platform, it is important that you have the disadvantages in mind too. We have listed the major disadvantages below to help ensure that you understand everything that is at stake before you create a money lending app!

1.   Presence of Debt Collectors

Although debt collectors also come into the picture when you don’t pay back your loan, it can cause an unpleasant experience and can sour the name of your company. However, it is a necessary part of the money lending app business and will help ensure that your expenses are recovered at the earliest.

2.   Low Loan Amounts and Limits

Owing to the ease of borrowing and conducting financial transactions, mobile lending apps and platforms have gained popularity. However, they are still relatively new and not a lot of creditors are ready to invest millions into a creditor they have never seen before. Hence, owing to the low loan amounts and limits in place, a lot of users might not use your loan lending app or platform; and, we recommend you take this disadvantage into account before you create a money lending app!

What Steps Should You Perform Before You Create a Money Lending App?

Before you create a money lending app, it is necessary that you have solid app and business plans in place; after all, loan app development is a complicated and time-taking process that might require you to invest a lot of money and hire a lot of developers. Although the pre-requisites can take up a lot of time, it is imperative that you complete them before you create a money lending app.

Prerequisite NecessaryDescription of the Stage
Registration of BusinessSince the money lending industry can be quite risky, it is always necessary to ensure that you are adhering to the law. Hence, in this stage, you must decide how you want to register your company and must enroll yourself as a business in the required government portals.
Securing Initial InvestmentsBefore you get into loan lending app development, you must ensure that you have investors who can back your dream and will also provide credit to borrowers. Some common ways in which you can secure the initial investment for your app include:-
● ICO or initial coin offering
● Venture capital
● Loans
Finding a reliable development and IT partnerOnce you have a solid plan in place, half the work is already done but the most crucial step is finding a reliable development and IT partner. Ensure that the team is capable of building functional apps seamlessly and quickly!
Planning to Create a Money Lending App

How to Create a Money Lending App? – A Step-by-Step Guide and Breakdown

Now that you are aware of all the prerequisites that you need to fulfill before you create a money lending app, let us discuss how to create a money lending app. In this article, we have broken the complete process down and created a step-by-step approach guide that you must refer to when you create a money lending app.

Creating Test Cases of All App Ideas to Check Whether It Is a Fit Solution or Not

When you get into money lending app development, you are sure to get numerous app ideas; but, before you finalize one of them, you must test whether they are the best possible solution or not. A great way to do that is considering the three most crucial elements of your app and business, i.e. competitors, industry scenario, and customers. We recommend you conduct an in-depth market research to understand more about the existing solutions in the industry and how you can ensure that your app is different from the rest!

Determining the Required Tech Stack for Successful Development

If you are wondering how to create a money lending app, do not worry because we are here with tech stack suggestions to help you out. Check out the list below and remember that even if you have secured a business loan for app development, you must save costs wherever possible.

ResponsibilityTech Software Suggestions
Front-EndHTML/CSS, JavaScript, TypeScript, React, Angular, Vue.js, Ember, Bootstrap, jQuery UI
Back-EndC#, Ruby, NodeJS, Java, C++, Go, PHP, Python
Blockchain (only if you want to add crypto options)Ethereum, Corda, Neo, Bitcoin, EOS.IO, Consensys Quorum
MobileObjective-C, Kotline, Java, Swift, Xamarin, Ionic, Flutter, React Native
DatabasesMySQL, MongoDB, SSQL, PostgreSQL, Berkley DB, Maria DB, SQLite, SQL
UI/UXFigma, Marvell, Sketch, Adobe After Effects, Adobe Photoshop, Adobe Illustrator, InVision

Hire a Professional Development Team

If you do not know any of these tech stacks and are worried how you will successfully create a money lending app, don’t be. Simply hire a app development team or partner with a professional app development company and transfer these responsibilities to them!

Create a Money Lending App MVP Version

We know that you harbor lofty aspirations and dreams for your app, yet we advocate you create a money lending app – Minimum Viable Product (MVP) version. Ensure that this app version incorporates all crucial features to guarantee an early-stage experience for your users.

Test Your App and Publish It

You must follow the final step, i.e. testing your app and publishing it on major application platforms – such as the Google Play Store or Apple App Store. By conducting in-depth, extensive testing, you can ensure that your app operates as expected – without encountering any errors.

What Is the Required Investment for Developing a Money Lending App?

Before you create a money lending app, it is necessary that you know about the expected investment amount. Bear in mind, total development costs hinge upon factors such as team size and their hiring location. The subsequent article enumerates average hourly rates for developers from various locales; we recommend you consult it for reference.

RegionAverage Hourly Developer Rates in $
Asia and India$15 – $50 USD
South America$18 – $75 USD
Eastern Europe$20 – $100 USD
Australia$40 – $170 USD
Western Europe$50 – $200 USD
North America$50 – $250 USD

CMARIX – The Top Lending App Software Development Company

In your pursuit of creating a money lending app, you must consider numerous conditions and factors that could potentially bewilder, even overwhelm, you. Furthermore, securing investment becomes your responsibility along with an array of managerial tasks. How can you maintain focus and ensure a holistic development process, then? How can you ensure that your resultant application impeccably aligns with your initial plans? Partner with CMARIX – India’s premier lending software development company; Entrust us and hand over all your developmental necessities to our proficient team!

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Written by Atman Rathod

Atman Rathod is the Founding Director at CMARIX TechnoLabs Pvt. Ltd., a leading web and mobile app development company with 17+ years of experience. Having travelled to 38+ countries globally and provided more than $40m USD of software services, he is actively working with Startups, SMEs and Corporations utilizing technology to provide business transformation.

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