A Guide on how to build money-lending apps

With the development of technologies, many things have become digital, and money lending is no exception. Money-lending apps are gaining popularity for many reasons: they allow for cutting bureaucracy and having multiple benefits for both parties: lenders and borrowers. The Grand View Research states that the global digital lending platform market size was valued at USD 5.84 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 25.9% from 2022 to 2030.

With such a great market size value, many people are interested in building their apps. So, this article will help you get a deeper understanding of the steps to complete during the money-lending app development, the great features to implement, the legal side of such apps, and how much the development cost in different countries.

Let’s get deeper!

Table of contents:

  1. What is a money-lending app?
  2. Money Lending App Must-Have Features
  3. How to start a lending app?
  4. What is the legal side of creating a money-lending app?
  5. How Much Does a Money Lending App Сost?
  6. Examples of best lending apps
  7. Final Thoughts

What is a money-lending app?

In the beginning, let’s define what a money-lending app is. It is an application that enables users to get a loan just in a few clicks. Basically, it replaces traditional loans and allows users to get the same services, avoiding bureaucracy. In addition, users can request loan money from lenders by using the p2p loan app, and no intermediary body is required. Such applications make this process easy from the customer’s point of view.

In the picture below, you can see the working principle of the money-lending app.

How P2P Lending App works

So, here are the steps that users take to use such an app:

  • Log in or register a new account.
  • Enter the amount of money to borrow or lend.
  • Choose the best interest rate.
  • Connect bank cards to the application.

Money Lending App Must-Have Features

There are many apps on the market today, and the needs of your users are growing all the time. Thus, ensure that your product has basic and some advanced features to be outstanding in the market.

So, here you can see must-have lending app features. Let’s talk about each of them in detail.

Basic money lending app features


The onboarding page creates the first impression of your users about the app, so ensure that this process is performed as smoothly as possible. To provide a great design to your clients, you can contact a team of professional UI/UX designers who create a user-centered design based on research, competitor analysis, and many different aspects.


Registration is considered to be one of the essential features of many apps. In money lending apps, it plays a key role as during this stage, you collect your users' data, without which the app can not perform its primary function.

Personal account

This feature allows users to edit and add their personal information:

  • Name;
  • Contact number;
  • E-mail address;
  • Country of residence;
  • Place of work;
  • Marital status, if needed.

User rating

User rating will simplify many processes in your money-lending application. So, the data collected previously will form users' credit scores. The rating will be added to the borrower's profile so lenders can decide whether to grant a loan to a particular person based on the rating.

Collective lending

Collective lending will enable your users to divide the loan among a group of people.


A chatbot will help you better organize your employees' time and volume of work. Such a feature will allow your company to provide its automated services 24x7. The article "NLP and Fintech Software: a Powerful Tool for Revolutionizing the Finance Sector" explained how to use AI in finance and how implementing NLP-based chatbots in the app can benefit any company.

Reporting and reminder system

Reporting will provide you with the needed information about users: you can see analytics on new users, the number of approved loans, transactions, etc. This will help you understand the users.

A reminder system with alerts will inform your clients of their actions in the app.

Loan restructuring

Loan restructuring allows flexibility of your app. Basically, users can change the terms of the loan: the amount of money, interest rate, payment date, etc.

System of feedback and recommendations

With these features, choosing a lender/borrower will be very simple: users can leave comments, feedback, and recommendation about others.

Integration with various payment systems

To attract more users, ensure that your application integrates various payment methods: bank cards, e-wallets, PayPal, Stripe, GooglePay, etc. Some payment methods or their functions can be restricted in different regions, so some users can not pay in the apps because of regional limitations. So, during the development process, ensure that your money-lending application offers different methods of payment.


Equated monthly installment (EMI) is a fixed amount of money that is by a borrower to a lender regularly. Usually, the clients pay every month. With each payment, EMIs are applied to the interest and principal. Therefore, users can pay the loan over the time they estimated.

How to start a lending app?

So, now you want to build a money-lending app. Here are the steps you need to take to create a successful application:

Step1: Test your money-lending application idea

The first thing to do before development- testing your money-lending application idea. You need to study the market and products of your competitors and understand your target audience and their needs to create an app that will outstand.

At first sight, this stage looks easy, but remember to perform it diligently to simplify your work in the later stages. Keep in mind that you are creating the app for particular users, so you should take into consideration their requirements.

Step 2: Write the Project Plan & Requirements

The next step is writing a detailed development plan for your product. This will allow you to organize every process and successfully create the app on time.

Another important thing here: we highly recommend you write a list of requirements for your future product. Such a list will be a helpful tool during every stage. Usually, the requirement document includes such things:

  • Full project overview.
  • Target audience.
  • Main needs and goals f the product.
  • Functional requirements
  • Set of features to implement.
  • UI requirements.
  • Non-functional details.
  • Recommendations and prohibitions.
  • Questions.

Step 3: Select Your Partner

Now, you need to select a reliable partner to help you bring your idea to life. Here are a few ways of finding a dedicated development team:

  1. Rating sites:  For example, on the Clutch, you can find different teams and see their expertise.
  2. Social networks: On LinkedIn, you can find profiles of design and development companies and their projects.
  3. Colleagues, friends, and partners: You can ask them about their experience of working with development teams.
  4. Contact Eliftech:  Our dedicated team with many successful projects in FinTech would be delighted to help you build a great money-lending app!

Step 4: Start With MVP

MVP, or minimum viable product, is an app with enough features to attract some customers during the product development cycle. Creating a money lending app MVP will help you avoid different mistakes in the future and define and understand the target audience better.

Step 5: Start Product Discovery

This process will help you find the best solution for your users. The Discovery Phase will help you analyze and define the main aspects of the project: the goals, scope, values, risks, and limitations. The more detailed your discovery phase will be, the better product you will build because the design and development team will better understand your requirements. During this phase, the team will consist of a project manager, UI/UX designer, a system architect, and a business analyst.

Step 6: Start to build a UX and UI Design

UX design will provide meaningful and enjoyable experiences to your users while using your product. An excellent UX is vital for building a user-friendly money-lending app. During this process, designers will study the users, define scenarios, and user flow, create a prototype, and test it!

UI design aims at building an aesthetically pleasing app: it includes creating screens, buttons, toggles, icons, and other visual elements your clients will interact with when using the product.

Step 7: Do a User Testing

When your UX/UI is done, you need to test how everything works. Testing will help you identify the problems early and fix them before users face them. It is a great tool to prevent bugs from happening and to understand whether the design is enjoyable for users. Also, testing will help you know how well your design is understandable and convenient for users.

Step 8: Build an App Development Process (SDLC)

Now, the development phase starts, and your beautiful design will turn into an actual product! During this phase, our dedicated team of developers will create technical documentation and build and test the application. All these steps will help us create a rich-in-features app that will work smoothly.

Step 9: Launch

And now, the moment everybody was waiting for: the world will see your app! Now, you can choose the platform for launching and starting the marketing campaign. For this, you will need to identify the target audience of the advertising, create a unique product packaging, and do the competitors' analysis.

To meet the requirements of your users, the app will need maintenance. So, if any issue needs to be fixed or your money-lending app needs any improvements, our dedicated team will take care of it.

When everything is clear from the technical side, you need to know about the legal aspect of creating a money-lending app.

There are many legal acts to keep in mind while developing a money-lending app. But right now, we would like to draw your attention to privacy legislation as your application will process the sensitive data of your users, so you need to ensure that any operations with your clients’ data are compliant with the privacy legislation.

GDPR Compliance

GDPR, or General Data Protection Regulation, is a legal act that protects the fundamental rights and freedoms of natural persons and, in particular, their right to the protection of personal data, the territorial scope of which is the EU. Ensure that data collection and processing of EU residents are performed in compliance with GDPR.

CCPA compliance

The California Consumer Privacy Act (CCPA) is the legal act that protects the rights of California citizens. This legislation gives consumers more control over the personal information that businesses collect about them. So, if your audience is in the USA, ensure that the app is CCPA-compliant.

Remember that the laws in particular countries can be different, so pay attention to the national legislation.

Examples of best lending apps

Here you can see the best lending apps:

  • Earnin: is a great choice known for with low fees
  • Payoff: has favorable conditions: the APR being between 5.99% and 24.99%, loans up to $40,000, and compensation terms between 2 and 5 years
  • MoneyLion: is best for multiple financial products
  • Upstart: allows to borrow money to people who don’t have an extensive credit history
  • Dave: an excellent option for small advances
  • Upgrade: an app known for its flexibility
  • Brigit: has a variety of budgeting tools
  • Chime: best for overdraft protection

How Much Does a Money-Lending App Сost?

It is pretty hard to predict the final cost of a money-lending app as many aspects affect the price: features, the app's complexity, and the country of development.

For example, here you can see the hourly rate for employing a professional in different countries:

North America – $80- $150 /hr

Eastern Europe – $40-$65 /hr

Ukraine – $25-$30 /hr

The IT industry in Ukraine is dynamically growing. This country is a great partner for building high-performance apps for a great price. For a more precise prediction of the final cost of your app, you can contact us, and we will provide you with all the details of our cooperation and discuss your demands and how we can implement them.

Final Thoughts

Well, to develop a successful app, you need to decide the features of the app, test your money lending application idea, write a project plan & requirements, go through discovery and development phases, and take into account the legal side of app development.

The ElifTech team is always open to exciting and challenging projects. So, if you would like to build your money-lending app – contact us, and we will discuss the details!

Tell us about your business idea or just say 'Hi!'.


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