A loan app sometimes referred to as a peer-to-peer lending app or a person-to-person lending app, describes people’s direct granting and receiving of loans. The individual is not required to use an intermediary or other traditional financial institutions. Money lending app development links potential borrowers with direct lenders, sometimes known as investors, who provide loans to suitable candidates. These applications connect those who want to lend money with those looking to borrow it.
Features of a money lending app development
- Registration/login. A user needs to be able to create an account and sign in using their phone number, email address, or even Facebook account. Users must also submit their contact information, which the platform will validate.
- Managing loans. The amount of the Goods and Services Tax (GST), the EMIs for the available loans, the platform processing costs, etc., should all be visible to users. Additionally, the borrowers should be able to generate and publish their loan applications, choose the anticipated payback duration, and interact with lenders to go over various facets of the loan application process.
- Billing and payment. A history of all payments should be kept in the loan app so that the lending process can be transparent.
- Purchases and EMIs. To repay the loan, a borrower must make EMIs that include interest and principal payments. These transactions should be saved for the convenience of an audit and future reference. After all, EMIs have been paid; the loan has been repaid in full.
- Withdrawals and transfers. The money lending app should offer the ability to withdraw money directly to the user’s debit card or bank account.
How to build a money lending app
The following steps will help you with how to create a money lending app (based on years of research by Topflight Apps).
1. Check your anticipated loan application.
You must first test your idea before developing a money-lending app. Examine the market and rival products. Obtain feedback from the target market. Find out what they feel is lacking from the program, what functions will be helpful, what is important to them, what should be added, etc.
2. Specify the project’s plan and requirements document
Next, design a comprehensive development plan for your product. Each action you take must be listed. A clear strategy is necessary to build a successful money-borrowing app because planning and organization keep things under control.
Compile a list of the requirements for your next product as well. With the help of this document, you and your team will be continually aware of what needs to be done to guarantee that the outcome corresponds to your original aims.
3. Select a partner for your app development
The next step on how to build a loan app is to pick a trustworthy partner. There are several strategies to find an excellent team to develop a spectacular product and release a loan application. Utilizing partners and coworkers, B2B websites, social media, and many other things are a few of them.
4. Develop an MVP
When you feel ready to start a loan lending mobile app development, it’s best to start with an MVP. Taking this proactive move can save time, effort, and money. Any mistakes and slip-ups you may have made while working will be brought to light by a minimal viable product.
5. Check Out Products Initial
Making a business case for your product and studying market research on competitors will help you develop a better solution than the competition is offering. Determine the problem your product will solve, whether users will buy and use it and whether your solution is workable.
6. Designing the UI/UX
Your product cannot be a peer-to-peer architecture that is challenging to comprehend. More people will feel comfortable using it, and the simpler it is. Therefore, when you create a loan app, you should incorporate all necessary features, make the interface user-friendly, and avoid overstuffing it with icons and images. It must include all MVP features and perhaps a few extras if your budget has money set aside for them. Think like a customer. The app’s actions must all be simple and clear. It will help with how to start a loan app.
7. Conduct user testing
It is the final stage of a money lending app development. How is it possible to make a loan application without errors and bugs? You must thoroughly test everything once your UX/UI is ready. Through testing, you’ll be able to identify errors and other problems early on and take swift corrective action. Testing will also help you determine how intuitive and understandable your design is.