How to Create a Money Lending App

The loan market has experienced significant structural changes in recent years. The situation in the world, economic uncertainty, and the interest rate increase changed the borrower needs, creditor priorities, and approaches to making deals.

Overview of the Market for Money Lending Applications

Alternative lending has strengthened its position and is expected to grow further with a CAGR of 10.1% till 2027 reaching US $971.6 million by 2027.

Macroeconomic changes are still happening throughout 2024. So, more flexible and customized private loans continue changing the landing market.

Digital solutions allow a fast and hassle-free process of money borrowing, which is often a decisive factor for those, who urgently need money. So, if you know how to create a money lending app, you can offer innovative solutions to meet the needs of both borrowers and lenders of contemporaneity.

The ostensible proof that money lending app development has huge potential nowadays is that in 2022 the solution segment attained the highest market share. It will grow, outperforming the service segment in the next decade at minimum. According to Strategic Market Research, the global digital lending platform market will witness a robust CAGR of 25.97% and is expected to reach $47.85 billion by 2030.

What Is a Money Lending App?

A money lending application runs on smartphones and tablets, allowing users to borrow funds on demand with digital technology. Such software solutions link the lenders, who have means, and borrowers, who need them. These applications allow users to easily get money without visiting a bank, loan broker, or any financial institution. At the same time, a client avoids borrowing from family or friends. Money lending apps may offer business and personal loans, mortgages, and auto loans from banks, credit unions, or individuals.

What's more, the platforms determine whether an applicant is eligible to get a loan. If the answer is positive, repayment is also realized through the app.



Client Manager

How Do Loan Mobile Apps Work?

Instant loan applications make the borrowing process instant and seamless. All the users need is to download an app from AppStore or Google Play Store and register in it using their mobile phone. The next step is to provide their basic info: date of birth, employment status, income, and credit score.

These details allow the app to deem a user eligible for the loan. As soon as it happens, the user can choose a type of loan using certain filters, the amount and repayment term can be chosen at this stage. Then a user should submit the necessary documents – proof of identity, income and bank statements, etc.

All the documents are uploaded through the app to evaluate the client’s creditworthiness. As a rule, they are quickly reviewed and the procedure can be completed right after the approval. The customer gets funds directly to the bank account and can immediately use them.

This is the basic user scenario for an app that loans you money, but why build it? What do you get out of it?

Why Create a Money Lending App?

The loan market and the market of money lending mobile applications overview prove that lending app development is well worth it. Before we check how to create a loan app, let’s also find out its benefits.

Firstly, when there is an app, the service can be accessed from anywhere, which is a huge advantage for both borrowers and lenders.

Speaking about the borrowers:

  • Online lending platforms and apps allow them to avoid or at least minimize contact with financial institutions or banks.
  • A mobile app is available 24/7 and in any emergency.
  • There is no need for a physical visit to a bank or some office, so you can apply from anywhere in the world.
  • Loans and cash receipts can be managed instantly, no need to wait long for approval.
  • The user's financial and personal data is well-protected.

Lenders are also the ones who benefit from mobile lending applications, because

  • Market reach is wider.
  • Software solutions enhance user experience and make the service more affordable so the number of users and moneylenders grow.
  • There is no need to communicate with the clients directly, so operating costs decrease due to automation.
  • Technology-driven apps enable quick loan processing and disbursing of funds quickly and efficiently.
  • The software checks the credit scores and documents of the borrowers, preventing fraud and bad loans.
  • Human resources can focus on the increased number of loans and servicing customers.
  • Modern AI technology improves credit products and attracts even more customers.
  • The next question is how to create a money lending mobile app? To answer it you should know the types of solutions in the market.
  • Money Lending App Types

    The type of software determines the specifics of development, cost, and features to develop money lending mobile app. Knowing the most popular types and the solutions with the highest potential, you can choose the mobile app you want to build. So, let’s get to it.

    Startup business loans

    The name is quite eloquent, such loans are for startups who aim to jump-start their business. They allow quick funding of over US $ 5,000. By developing an app for startup business loans you can connect businesses and lenders.

    The majority of the platforms operate locally, so your competitive advantage can be to develop a solution, available worldwide.

    Small personal loans

    Small personal loans are for those who have problems with credit score, yet need quick money. These loans are usually under US $10,000. They are paid back in monthly installments.

    When developing a small personal loans app, consider the best options available in the market now and go a bit further.

    Small loans for cash advances

    As a rule, small cash loans are under US $500 with fast funding and minimal fees. They are instant and without a credit check, some apps recommend loans based on the profile of a borrower. Some services take fees for loan processing and some charge small margins added to interest installments. It’s up to you to decide how to monetize your app and make it most appealing to your users.

    Why Are Loan Applications So Popular?

    Life is full of unexpectedness: accidents, urgent repairs, unforeseen hospitalizations, tax bills, and many more reasons why we need money. All these make quick loans a popular means to solve monetary problems.

    Money lending applications are useful instruments to get funds right away. They allow the borrowers, to apply, submit documents, get approval, and finally the money right to their account.

    The process is hassle-free and can be realized from any place and at any time without a visit to the bank or any other financial institution. There is no need for paperwork or physical presence, and there is no restriction to apply only during business hours.

    A loan app is a tool that is always in a smartphone and all the borrower needs to get some financial assistance is an internet connection.

    For a lender, it’s also a perfect tool to get profit and raise the capital they have.

    How to Create a Money Lending Mobile App: What to Start With?

    Analyze the market

    Market analysis is what you should start with. Take a careful look at the existing lending applications, and find out their benefits and drawbacks. Check user feedback and reviews, they can be found on various sites and on YouTube. A good idea is to get a first-hand experience with some of them. Try different approaches to get a clear picture of the present-day market you are going to enter.

    Besides the existing applications, study the target audience, their pains, preferences, and needs. It will help you figure out user characteristics, the concept, and the key features of the app.

    Check how your competitors have realized this already and where they have failed. It will also help you make your app idea crystal clear.

    Decide on the app type

    As soon as your research is finished, make up your mind as to the app type. We have discussed above the 3 types of money-lending apps. The type of software solution, target audience, and basic features will determine the tech stack and the development cost. Targeting mass consumers, you can go for a cross-platform app and get the product developed in less than 6 months.

    Find a development team

    When the idea and concept of your product are clear, it’s high time to find the professionals who will bring it to life. Generally, there are 3 main cooperation strategies in the IT world: hiring an in-house development team, working with freelancers, or outsourcing. Your goals, objectives, and financial opportunities will determine the choice, yet hiring a dedicated team is the best. A contract with such a team will give you more guarantees of achieving the planned result, which may be risky with freelancers. More than that they have all the resources, knowledge, hard- and software, and experience (check it in your niche) to develop a leading-edge app and prompt technical details.

    Choose the tech stack

    This is the practical step that development experts should decide. They should choose the best technologies for your application security, infrastructure, UI/UX design and implementation, backend and frontend development, and database management.

    The best security practices should be implemented to ensure the safety of private and financial data, which should be encrypted.

    Select features

    We advise you to prioritize features according to your strategic goals and market trends and with respect to your budget. If you develop an MVP select the must-have features first and implement them. If you build a product, start with the must-have features but make it flexible and scalable. Form the core user experience and alter it later on if necessary.

    The next group is should-have features. They are good for user satisfaction and enhance usability, but can be implemented in the second iteration.

    Could-have features are non-essential, they are beneficial, but not critical. You can add them whenever there is time or budget for this.

    Finally, some features, nice-to-have, can be postponed. They are usually 3rd party integrations or advanced analytics, which become more actual with the growing user base.

    Create UI/UX design

    A good intuitive design is the key to your audience loyalty. A simple and easy-to-navigate interface will keep your users engaged. You can add gamification to make getting credit points more exciting.

    Development part

    This part includes all the traditional back- and front-end development tasks. While the front end is focused on UI, application layout, buttons, menus, and webpages, the back end deals with the server side. It includes database development, dealing with the app’s logic, and building APIs for backend-frontend communication.

    A lending app deals with finances, so you should consider the 3rd party integrations of the necessary services, accounting systems, and payment gateways, like e-wallets, bank cards, PayPal, Stripe, and alike through the necessary APIs. Check everything that should be integrated to ensure your app’s leading-edge functionality and security for your customers.

    This stage also includes quality assurance and testing, before launching.

    App launch and maintenance

    Finally, when the steps above are all set, your app is functional, intuitive, and operates smoothly, it’s time to deploy it. Launch it in the App Store, Google Play, and other platforms and monitor the feedback. Pay attention to what users say, and how they like your app. Implement the necessary modifications and fix the bugs if there are any. Update your app regularly to keep it functional.

    Must-have Features

    When prioritizing features, you should be careful to select the must-have functionality of your app for your MVP. It will become the core and the backbone of your app, later on.

    Let’s think over the list of such features together.


    Registration and authentication go without a question for a loaning money app. The registration process should be simple and hassle-free. However, require complex passwords to ensure data safety. Consider adding up two-factor authentication or verification through biometric data.

    User Profile

    Users should store their personal info and important financial details safely in their profiles. Credit card credentials, bank account details, government-issued ID and much more can be stored in a user profile.


    Any confidential data transferred through the loan mobile app must be encrypted both in transit and storage. Ensure the servers are protected from attacks and privacy leaks.

    Loan application form

    This is the key feature of the whole app. Application forms for borrowing money should be well-structured, and divided into stages, yet simple and intuitive, clear to every user.


    As soon as the loan is received, it should be repaid. Offer your users to link their bank account and the loan to make regular monthly payments. A good idea is to implement auto payments.

    Payment log

    There should be a specific tab, dashboard, or journal, where the borrowers can review their payment history, check the payments pending and due, and fix the amount of the debt remaining.


    Notifications as to the payment's due time should be implemented to remind the users to keep to the schedule. Also, consider notifications about refinancing promotions or new profitable loans.


    The users should feel safe and free to ask questions if they need to clarify something. So, you can have a chat with a support service and also consider one with a lending manager to close both technical and financial questions.

    Security and legal compliance

    We’ve mentioned not once that the highest level of security is necessary when it comes to finances, so be ready to meet the strict demands. Protect personal and financial data and also transactions. Make your app fault-tolerant and protect it against the most widespread risks, like broken authentication, cross-site scripting, SQL injections, etc.

    Let’s delve into the legal aspect a bit deeper.

    Development of an Application for Lending Money: Legal Aspects

    The legal requirements should be carefully studied before the money lending application development. The trickiest thing is that the legislation and regulations differ from region to region. That’s why global money lending apps are rare.

    The list of regulations below will help you avoid big fines, but study the local laws as well.

    In Europe – make sure your app-to-be complies with GDPR.

    In the USA – make it meet CCPA (California Consumer Privacy Act), CFPB (Consumer Financial Protection Bureau) requirements, and Agencies with Fair Lending Authority regulations.

    Counties and sometimes even cities covered by your app may have their specific requirements for such business. GLBA (Gramm-Leach-Bliley Act), for instance, specifically requires that all US businesses set standards to protect the security and privacy of the customers’ NPI (Nonpublic Personal Information).

    Loan guidelines change frequently, a good idea is to hire a legal consultant to keep an eye on legal changes in this segment.

    Things to Consider Before Loan App Development

    Before developing any software, you should carefully consider all the challenges that may await you. With fintech apps and money lending solutions, these considerations are much more serious. They require a much more delicate approach to security, 3rd party integrations, and legal aspects.

    Fintech regulations

    Figure out the regulations your software solution should comply with and the way you will implement it. Ensure not to overlook any essential detail, because it may cost you a fortune.

    Stack of technologies

    When you develop an app, you should choose a platform. It is determined by your target audience. The development team should evaluate what development approach and technologies to choose. Your budget is another aspect that influences this choice.

    Competitive advantage

    To gain an audience you should stand out because the industry is highly competitive. So, you need to figure out the competitive advantage. This unique proposition will also serve your marketing purposes.


    An investor or a bank is needed to get this business off the ground. Be careful with legal regulations, especially with banks. Take care of fair partnership, ownership, and shares with investors.


    A trustworthy development team with relevant experience can also be a challenge. Choose the loan mobile app developers who have positive feedback from the clients in your niche and work with the necessary tech stack. They should also offer a transparent pricing system and a quick project accomplishment.

    How Much Does It Cost to Build a Money Lending App?

    This is an eternal question that has no definite answer. The cost of a money lending app development is determined by multifaceted aspects.

    The major of them are:

    • The team you cooperate with.

      Here there are also differentiations between the level of specialists, their hourly rates, and the form of cooperation you choose.
    • Region.

      The most expensive developers work in the USA and Western Europe. Their hourly rates may range from US $50 to $250. Australian specialists charge from US $40 to $170 per hour, while in India and Asia, the rate is as low as US $10 to $40. However, the quality may suffer. The ideal balance of cost and quality can be found in Eastern Europe and Ukraine in particular. Ukrainian skilled programmers rank among the top 10 worldwide, specialize in various niches, and work with a diverse suite of technologies.

    Create a Money Lending App with Stfalcon

    Stfalcon team provides a full cycle of financial software creation, including the phase of discovery, UI/UX design, architecture planning, development, deployment, testing, maintenance, and support services.

    We offer a dedicated fintech development team that is experienced in the niche and ready to prompt our clients with the best solutions both from technical and business viewpoints. Our variable fintech projects fulfilled earlier allow us to create applications that fully comply with the client's requirements.

    We have had a successful project with the French biggest bank and one of the biggest companies. Our experts had certain technical limitations associated with the framework used however they fully satisfied the client’s expectations and went above and beyond the initial project scope.

    Read the full case study

    Our company has also developed a ready-to-use SDK for a crypto wallet based on Kotlin Multiplatform. This SDK integrates business logic and encapsulates all internal processes responsible for encryption, storage, and authorization. So, we know well how to implement the most up-to-date security measures.

    Read the full case study


    With Stfalcon, you can rest assured your technical sphere is well-handled by a highly professional development team and take care of business processes. Our expertise in the fintech sphere and the most modern technologies we work with make us the best vendor for your loaning money app development.

    We can prompt you with the best tech decisions and create the best product in the niche to stand out among the competitors. If you still have doubts or questions, contact us right away and we’ll start the journey hand in hand with you.

    FAQs about Creating a Money Lending App

    How to build a lending app?

    All you need to build a money lending app is to analyze the market, learn all the regulations in this sphere, decide on the type of app, and hire the right vendor for your software product. However, if you want to participate in the process, you should create the feature list, and consider the tech stack and design specifics.

    What is peer to peer lending application?

    Person-to-person lending sounds much clearer. It’s the type of lending when people issue and receive loans without banks or other conventional financial institutions. So, a P2P lending app is a platform that links the borrowers and the lenders. The latter are primarily individuals, but can also be companies. The companies-intermediaries that create such p2p software can benefit from each deal in the form of a fixed payment or some percent of the loan amount charged from both a lender and a borrower.

    How long does it take to create a loan app?

    The term of a loan app creation depends on its complexity. An MVP can be created in about 3 months. A full-fledged application development may take up to 6 months with must-have features. All the rest depends on the client’s wishes, requirements, and budget. If you want to implement should-have, could-have, and nice-to-have features to make your solution the best in the market, be ready for up to a year work with continuous maintenance and support after it.

    How do loan mobile apps work?

    After the app is downloaded, a user should register in it and provide the basic info: date of birth, employment status, income, and credit score. As soon as the app decides the applicant is eligible for the loan, the user can choose the type and amount of it. Then the necessary documents, like proof of identity, income, and bank statements, should be submitted right in the app for review. If the decision is positive, the borrower gets funds directly to the bank account.