Comprehensive Step-by-Step Guide on How to Build Money Lending App

With the development of technologies, so much has become digital – shopping, dating, delivery, and even money lending. Money lending mobile apps are gaining momentum for two main reasons: they have multiple benefits for lenders and borrowers and cut bureaucracy in half. The Grand View Research states that the global digital lending platform market size is expected to register a compound annual growth rate (CAGR) of 25.9% from 2022 to 2030.

With such a great market value, many businesses got into the game of money-lending apps. So, we’ve compiled a Comprehensive Step-by-Step Guide to money lending app development, with all the critical features to implement, the legal side of such mobile loan apps, and how much the development costs in different countries.

Some Statistics on Money Lending Apps

The development of an application for microcredit is a practical solution for companies that issue loans online to their customers because taking and returning money is more convenient this way. To help you figure out what the money lending mobile landscape looks like in 2022 and how loan mobile apps work, we’ve created this comprehensive guide.

According to statistics in the microfinance sector for 60% of companies issuing loans, this market has been growing steadily since 2016. People are taking out more and more loans for large amounts, and the number of microloans is increasing by 30% or more every year. In such a situation on the market, the quality of service comes first, and applying for a microloan is one of the ways to become more convenient for customers.

Fintech Statistics

One great upside of such loan apps is the client's ability to get a loan just in a few clicks. It does not replace traditional loans but allows users to get conventional financial services avoiding bureaucracy. In addition, users can request loan money from lenders using the peer-to-peer lending app, and no intermediary body is required.

Lending Platform statistics

Examples of lending apps

To illustrate how money lending via apps works, here's a list of the most well-known of today's money-borrowing and money-lending apps:

1. SoFi: SoFi or Social Finance, Inc was founded in 2011 by Stanford Business School students. It was based on an alumni-funded lending model. SoFi is an online lending solution that offers unsecured personal loans in the USA. Loans from $5,000 to $100,000 are available for two to seven years.

2. Brigit: Brigit is an app that can get you $250 without undergoing a credit check. Moreover, after submitting a request, you can get an interest-free cash advance in as little as 20 minutes. Brigit offers two plans to select from - Free and Plus plans. The free plan presents financial insights and tips to you, but it doesn't give you any access to cash advances. For that, you'll have to enroll in the Plus plan.

3. Chime: Chime is associated with Chime's Checking Account. With Chime, users can receive directly deposited paychecks up to two days in advance. Moreover, the app can detect any unauthorized expenses. Chime accounts are free. It provides bank loans without bank fees. It earns revenue from fees charged to merchants for each transaction.

4. Earnin: Earnin is a money-borrowing app or a paycheck advance and personal loan app development that tracks your hours worked – using a timesheet or monitoring your job location – and lets you borrow money in advance of your paycheck.

5. Dave: The Dave money borrowing app is built for users to borrow money. To be eligible for a loan, Dave users must create an "ExtraCash" account. The app also has a unique "Side Hustle" feature that allows users to find side jobs to earn more money.

6. Empower: Empower money borrowing app offers cash loans, budgeting tools, and even bank accounts. The typical timeframe for receiving funds with Empower is one day. However, users can pay an additional instant delivery fee to get the funds within an hour. In addition, the app has an automatic savings feature to allow clients to select a certain amount for the app to transfer from their checking to a savings account or ask the app to save for them using artificial intelligence.

7. MoneyLion: The MoneyLion money borrowing app, besides lending, offers banking and investment options, plus financial tracking and a credit-builder loan. As for the loans themselves, it allows cash advances of $250. In addition, the "Instacash advance" (micro-loan) is available to anyone with a qualifying checking account. However, you'll have to pay a fee if you need your funds quickly.

9. Payoff: The payoff money borrowing app lets you add your debts and has 8 loan categories, including rare medical loans. Payoff options include the popular debt snowball and avalanche methods, as well as your custom plan. The Payoff will show you the optimum plan and calculate a timeframe for your debt to be paid off with each option. This makes the app perfect for many consumers stuck between debt snowballs and debt avalanche methods.

10. Upstart: Upstart money borrowing app is an innovative platform founded by ex-Googlers. The company's ultimate goal is software creation for banks and financial institutions. The most notable app feature is a unique risk calculation method based on artificial intelligence (AI). Upstart was one of the pioneers of applying AI to the industry. AI allows rewiring the verification process and assesses the borrower's FICO score, credit and job history, etc. The system uses non-conventional variables at scale to improve debtors' access to a loan.

11. Upgrade: Upgrade money borrowing app is also a financial technology company offering affordable and responsible credit to mainstream consumers through cards and personal loans, with free credit monitoring and education tools to help consumers better understand and manage their finances. It's easy to check your rate and see what you qualify for or get started tracking and monitoring your credit, like personal loans, upgrade cards, and credit health.

Why does the business need the micro-loan service application?

why is the lending app in high demand now?

A simple answer is that the apps allow consolidating all services in one place. However, developing an application for microcredit is a complex task. It includes creating a service for clients and employees of other financial institutions. The former receive all the features for getting a loan, like a calculator or a personal details and loyalty program. The second reason is all the statistics and tools are dealing with delays. Plus, the main function remains the automatic issuance of a loan online to the card - the application itself decides on the available amount and other loan conditions based on a complex algorithm.

Another big reason to consider using an app for microcredits and personal loan business is powering the service up with a built-in CRM system for loan management & accounting. The application will transfer data about users, loans, and repayment schedules to and from a database. It can be connected to the same CRM you use for the site and physical points to create a single ecosystem.

If you work with clients only through the application, order the loan app development personalized system for managers. It will be possible to issue roles and access levels for personnel, set up automatic algorithms that will be launched when certain conditions are met, for example, charge a late fee and report it, and collect statistics. It makes loan management as straightforward as it gets.

Number of consumers with personal

Fast issuance and straightforward navigation are also at the top of the advantage list for microcredit services. For the user, it is the option of getting a loan in a few minutes. A money lending app will allow your clients to repay loans faster. Compared to the site, one of the application's assets is a simpler and more understandable interface. There will be a separate page for each registration step and further actions. The registration steps can be customized, depending on what kind of information about users you want to receive from them and from official sources. The menu and navigation of the application will be similar to other loan applications in iOS and Android, thus familiar, not to let you get lost on the way to the target action. All data entered during registration for the first loan will be saved, and you can get the next one even faster. A page with answers to frequently asked questions will reduce the burden on operators.

Integrations are the "it factors" of our technological age. The proper approach to developing an application for microcredit takes into account all the stages a client goes through to receive a loan. These are authentication features such as phone number and bank card verification and synchronization with credit bureaus. The list of mandatory integrations includes payment by card, sending alerts through various channels, and an optional chat with a bot or real employee.

You can only attract new customers and keep regular ones by constantly analyzing statistics and improving the service. It is possible to connect marketing tools to the application to track the effect of email newsletters and advertising on different channels. You can also view users' actions in the application itself to understand, for example, at what stage of filling out an application they have problems. Statistics will help select personal offers for regular customers and launch advertising campaigns where they will be seen.

Safety and security are the cornerstone of any money-related service, particularly an app. For clients, this means multi-step authentication. To get into the personal details on the lending apps, the client needs to enter a login, password, SMS code, and sometimes even a captcha. This provides data protection but is very time-consuming. It is much easier and faster to enter the application with a fingerprint or Face ID. The level of confidentiality will remain the same, and comfort will increase several times. Security for the Money lending app is protection from bots. Anti-fraud and scoring systems are connected to the application, which, using machine learning, weed out scammers.

Personalization is the "lord and savior" of any financial service designed for a person and “personal loans” rather than business entities and “business loans.” Developing a microcredit application makes creating a unique, recognizable design possible. It can be branded graphics for important elements, such as charts and calculators, and the entire interface. The evaluation of the service by users directly depends on the visual quality. In addition, the application has many bonuses compared to the site. For example, it will be able to send push notifications instead of SMS and email newsletters, download a PDF file with a contract for viewing, and so on.

Key features to include in the lending app

There are many apps on the market today, and the needs of your users for the straightforward lending process are growing all the time. To build a mobile lending app that has a sleek interface is simple to use, and can win over your clients, you must choose its features carefully. Here's a list of features your app must have to make the life of your users easier.

Onboarding: The onboarding page produces the first impression on your users, so ensure that it works as smoothly as possible. To provide a great design to your clients, you can contact a team of professional UI/UX designers who create their products based on research, competitor analysis, and many different aspects.

Registration: Registration is 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 that are needed for the app to perform its primary function. Therefore, user registration is one of the critical features of almost every application. However, to make your lending app stand out, be sure to:

  • Allow users to browse the app and check its essential functions without registering.
  • Allow your users to register and log into their account with the help of an Email ID, phone number, or via social media handles such as Google or Facebook.

Remember that at this stage, a simple and frictionless user experience paves the way for higher user adoption.

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

  • Name
  • Contact number
  • Email address
  • Country of residence
  • Place of work
  • Marital status, if needed.

In a personal account, users can add and modify their profile details. The best practice among such apps is hiding the user profile details by default, but for the first-time user, you can add template info to all fields as a hint.

Loan Application Form: This element has to be the core of your money-lending app. With this, users should be able to create their loan application, choose the estimated payback period, communicate with lenders, and view the status of the application. Consider breaking the loan application procedure into distinct steps and guiding the users through the process to make it simpler for them.

Loan Calculator: Users appreciate it when they can quickly calculate their monthly installments/payments, down payment, interest rate, amount of interest, and loan fees. Instead of using a separate calculator, this feature manages the calculation work for loans.

Year-over-year change loan balances

Payment & Billing: Once a loan is funded, users will need a place to check all pending and completed EMIs. They would also need to view the remaining debt amount. Other than that, payment gateways integrated with the app offer users different payment tools and lending platforms to facilitate fast and secure money transactions.

Collective lending: Collective lending will enable users to split the loan among several people.

Chatbot: A chatbot will help you better organize your employees' time and volume of work. In addition, with such a feature, your company will be providing its automated services 24x7. The article "Main Use Cases of NLP in Fintech" 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 and will help you understand them better: you can see analytics on new users, the number of approved loans, transactions, etc.

EMIs: To repay the loan, a borrower must pay equated monthly installments (EMIs) covering both the interest and principal. When all the EMIs are paid, and the loan is returned, all transactions saved here serve for easy audit and further reference. EMI is a fixed amount of money that a borrower pays 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.

Loan restructuring: Loan restructuring adds flexibility to your app. Users can change the loan terms, namely, 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 because users can leave comments, feedback, and suggestion about others.

User rating will simplify many processes in your money lending application. The data collected previously will form users' credit scores. In addition, 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.

Integration with various payment systems: To attract more users, ensure that your application integrates multiple payment methods: bank cards, e-wallets, PayPal, Stripe, Google Pay, etc. Some payment methods or their functions can be restricted in different regions, so some users may not be able to pay in the apps because of regional limitations. At the development stage, ensure that your money lending application offers alternative payment methods.

The following features can help make your money-lending app all the more attractive for your users:

  • Transfers: to allow users to transfer funds to a bank account.
  • Credit Score: integrate your app with a credit score service. It will help the users to check their loan eligibility.
  • Reward points & ratings.
  • Live chat support.
  • Discounts and offers.
  • Customizable reports for all parties.

P2P Lending and its Features

The financial sphere is closely related to information and its ways of processing. Therefore, the development of information technologies significantly impacts traditional finances. One of the most affected areas is banking. The peculiarities of conventional institutions are changing, new ways of organizing banking and the corresponding market participants are emerging, and all of these mean changes to banking. The greatest potential in this direction comes from P2P crediting, better known now as “P2P lending”.

The development of P2P became possible due to the advances in information technology. The first decentralized P2P lending platform was British Zopa, which started operations in 2005. Not only does P2P create additional opportunities for both borrowers and lenders, but it can also become a source of additional risks for the financial system. Therefore, P2P lending is relevant to the idea of decentralized lending. Even though P2P lending is relatively new, much attention is paid to it globally.

P2P lending market

Unlike banks, the P2P platform is run only by the organizer of the lending process and not its direct participant. It brings together creditors and borrowers, assesses risks for P2P lending, and can offer a marketplace for it. However, loans are decentralized by some platform participants, and this is the main feature of P2P networks. Despite the absence of banks in the provisioning scheme, P2P-lending loans perform the same functions. The transformation takes into account the amounts, terms, and risks. In addition, it decreases information asymmetry. Let's consider each of these aspects of lending in more detail.

Transformation by amounts is the simplest. Each loan within the framework of P2P lending is financed by several lenders, which makes it possible to finance even relatively large projects. It is worth noting that currently, the volume of loans remains modest by the standards of traditional banking - it is tens of thousands of dollars and not hundreds of millions, while the main borrowers act as natural persons, which imposes substantial restrictions on the maximum size of loans. But over time, the scale of P2P lending may grow up.

Features of money lending app

Here are the steps that users take to use such an app:

  • First, log in or register a new account.
  • Then, enter the amount of money to borrow or lend.
  • Next, choose the best interest rate.
  • Finally, connect bank cards to the application.

The stages of developing an application for micro-loan service

4 steps in the process of development

Development stage #1

Analytics and development of technical specifications: Work on each project begins with creating a concept. Then, a comprehensive analysis of your business, niche, and competitors is carried out. All this helps to understand the target audience better and develop a strategy to attract it. Finally, the received data is used to create a technical brief for developing the application.

Development stage #2

Test your money lending application idea: The first thing to do before loan app development is to test your 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 stand out. At first sight, this stage looks easy, but remember to perform it diligently to simplify your work at the later stages. Also, remember that you are creating the app for particular users, so you should consider their requirements.

Steps in the process of development

Development stage #3

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. We also 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 of the product
  • Functional requirements
  • Set of features to implement
  • UI requirements
  • Non-functional details
  • Recommendations and prohibitions
  • Questions

Development stage #4

Select Your Partner: Selecting a reliable partner helps you bring your idea to life. Here are a few ways of finding a dedicated development team:

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

Development stage #5

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. The technical part of developing an application for microcredit services depends on the platform on which you want to run it.

Development stage #6

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.

Development stage #7

Start to build a UX and UI design: Developing a microcredit application starts with creating a UI/UX layout. This is an interface framework based on user behavior analytics data. The next stage is the assessment of the functionality and layout of interface elements that lending apps clients will interact with. Finally, UI designers decide on the appearance of the application layout. Their job is to create a user interface that will make the application beautiful and understandable and lead to targeted actions. They are the ones who think through the customer's journey, add hints, autofill forms, and much more. In parallel with this, they create the application's design: they use successful combinations of branded colors for elements, draw graphic content, and so on.

UX design will provide meaningful and enjoyable experiences to your users. For example, an excellent UX is vital for building a user-friendly money-lending app. During this stage, designers will study the users, define scenarios and user flow, create a prototype, and test it! In addition, 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.

Development stage #8

Do user testing: Before launching the application, it is checked for stability and speed. The developers find and fix bugs that may interfere with application functions. You must test how everything works when your UX/UI is done. Testing will help you identify the problems early and fix them before users face them. It is a necessary step to prevent bugs and understand whether the design is enjoyable for users. Also, testing will help you know how understandable and convenient your design is.

Development stage #9

Build an app development process (SDLC): 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.

Development stage #10

Launch: This is 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. After publication, you can refine the application, including fixing non-critical errors and adding new pages, sections, and options. In most cases, it is more profitable to quickly launch an MVP - an application with a minimum of functions needed for work - and gradually scale it up.

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.

There are many legal aspects to remember while developing a money-lending app. But right now, we want to draw your attention to privacy legislation as your application will process your users' sensitive data, so you must ensure that all operations with your clients' data comply with the privacy legislation.

  • GDPR Legal 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. Therefore, ensure that data collection and processing of EU residents comply with GDPR.
  • CCPA Legal 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.

What the cost of development depends on?

The price of developing an application for microfinance organizations depends on the project's complexity (the number of pages and functions) and on whether you will launch two native loan applications for iOS and Android or one cross-platform app. Experience in development and comprehensive analytics before the creation of the application allows us to accurately calculate the price and terms before signing the contract. As a result, you will know exactly how long it will take to implement the project as a whole and each feature in particular, and you will also see what exactly you are paying for - a description of the tasks of programmers, designers, testers, and other specialists.

How much does a money lending app cost?

It is 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 – $35-$50 /hr

The IT industry in Ukraine is dynamically growing. Therefore, this country is a great partner for building high-performance loan 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

The development of financial programs is necessary for both businesses and customers. This is a great way for a company to interact with its customers, provide unique opportunities and tools, and optimize budget control. In addition, this is a worthwhile investment in the company's future. To develop a successful app, you need to decide the app's features, 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 the app development process. The ElifTech team is always open to exciting and challenging projects. So, if you want to build your money lending app – contact us, and we will discuss the details!


The price of developing loan lending mobile apps for microfinance organizations depends on the project's complexity (number of pages and functions) and whether you will launch two native loan lending mobile apps for iOS and Android or one cross-platform app. The clearer a technical brief is, the more accurately the team will name the price.

The loan lending app development can connect marketing tools to track the effectiveness of advertising on different channels. You can also view users' actions in the application itself to understand, for example, at what stage of filling out an application they have problems.

The duration depends on the technical part's complexity, the user interface's features, and the functionality. To get a preliminary estimate, fill out the feedback form.

Anti-fraud and scoring systems are connected to the application, which, using machine learning, weed out scammers.

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