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Loan Lending App Development: How to Create a Loan App and How Much Does it Cost in 2022

Loan Lending App Development: How to Create a Loan App and How Much Does it Cost in 2022

In 2022, Fintech applications remain to be an efficient tool in the provision of financial services and personal financial management. Loan lending apps are the essential type of fintech apps designed to facilitate the loaning process. This page is dedicated to enlightening curious readers in every aspect of loan lending app development, namely the types of loan lending apps, development stages, and the creation cost.

Loan lending app: What is the Definition?

Before delving into details, let’s nail down the definition of loan lending apps and their current condition in the fintech scene.
P2p loan lending app is a type of fintech application designed to facilitate the lending process. This is achieved by immediately connecting a borrower and a lender directly without the need for mediators, banks, and credit unions. Loan lending apps cover the entire lending process from loan application to payday.

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Volodymyr Khodonovych
Fintech Expert
Skilled, experienced fintech expert from Perfsol is ready to answer any questions regarding the design and development of fintech software products. Choose a platform to speak, ask questions and we'll certainly answer.

The number of loan lending mobile applications is steadily increasing. However, there are many reasons why this is the right time for p2p loan lending app development. Statista predicts the loan lending market to face significant growth in the two following years. By 2024, the mobile app loan market size will reach USD 24,914 compared to 20,391 in 2020 and 23,599 this year. See the graph below.
Loan-lending-app-market-predictions-min.jpg

5 Types of Loan Lending Apps

Depending on the type of loan, there are at least 5 types of specialized applications you may consider for development. Here they are.

Students Loan

These apps target a specific audience of borrowers who mainly need to cover their educational costs. Student loan apps are a popular type of loan landing application that can be delivered with ease by a creative and professional development team.

Home Loan

Home loan application development is perfect for those who are ready to help people with mortgages. If you invest in the development of a user-friendly and simple-to-use solution, people are likely to spread the word about it.

Vehicle Loan

By vehicle loan lending app development, you let people cover the costs for essential joys such as acquiring a vehicle.

Business Loan

This caters exclusively to needy businesses or startups. If you aim to help individuals with setting up or recovering their business, opt for business loan application development.

Personal Loan Mobile App

Probably the broadest popular type of loan and thus the most attractive to lenders. These are the loans obtained for personal use. Customers’ personal loan app development is often associated with charging higher interest and turning into more profit.

Lending Software Development Stages

Now let’s discuss what are the fundamental stages in the development of a loan lending app. Here is the procedure that a professional development team adheres to for creating full-feature software.

Setting a Strategy

A development team relies on your product suggestion or helps to originate one. An idea incorporated with the knowledge and expertize of a programmer team is fundamental for the development of a loan lending app that will generate significant profits.

Concept Development

UI/UX designers build an application interface that will work perfectly for your business. The concept developed largely depends on the type of application being built and your TA as well.

Implementation

Utilizing the most appropriate technologies to fit the features and functionality required, a programmer's team implements an idea into a turnkey loan giving app.

Testing

The purpose of testing is to make sure a final product is bug-free. Only serious errors in loan lending app development can be fixed at this stage.

Post-release Support and Maintenance

After an application finally reached the audience, it’s essential that free support and supervision are provided. This is the only way to let a product not only hit the market but guarantee its continuous performance.

Apart from the technical aspects we covered, remember there are essential legal compliance and encryption issues to consider before initiating the development. These are GDPR compliance, Ensuring Fault Tolerance, CCPA Compliance (in case of loan lending app development for Californian users, and Security prioritization).
H2: Loan Lending App Development Cost
Depending on the scope of work, the technology model, and the development team, we can approximately estimate the final development cost. As usual, loan lending applications’ price starts from $30.000 and can reach a whopping $84.000.

Top Tips on Reducing Loan App Development Cost

Not every financial startup is willing to spend vast sums on application development. Thus, if you wonder how to get a game-changing loan lending app at the most reasonable price-quality ratio the following tips are for you. Please, notice that we don’t consider here the extreme ways of saving and do not suggest sacrificing the quality for reducing the paycheck.

Focus on Eastern European Developers

Location of a loan app development team is one of the major contributors to the final cost of the software. When it comes to getting savvy, we suggest outsourcing to Eastern Europe for getting the best outcome for optimal price.

Start with MVP

You don’t necessarily need to opt for every single feature that you think might be useful for end customers. Starting with MVP (minimum viable product) of a micro lending app can help you test the waters before creating a final version of an application. This is how you’ll see what features satisfy the needs of your TA and what extras can be added further.

Create Prototypes

The creation of a clickable prototype is one of the best ways to keep costs down. Ask designers to dish out a clickable prototype that will showcase the flow of your app. This will show whether a loan landing app is ready for development before you actually start investing in it

Create Cross-Platform Mobile Loan Apps

Every entrepreneur wishing to launch a mobile app faces a dilemma whether to launch an application for iOS or Android or even both. The best way to save money, in the long run, is to create cross-platform software from the start.

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