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The process of taking a loan is a headache. But fortunately, there are ways in which the headaches can be reduced. If you are an online loan company and are looking to offer simpler, online solutions to the many problems of the loan application process, then this blog can help you out. Here are 4 different app ideas for online loan companies that will benefit you as well as your users.
“Finally, it’s Friday. Let’s go out, man!”
“Nope, not today. I’m broke.”
“But we are just halfway into the month, where did your salary vanish?”
“I got into that accident, remember? Had to pay a lot for my car.”
Familiar story? This happens to a lot of young people. Many of them don’t have enough savings as a backup and live their lives from one paycheck to the next. To help them out, many banks have started offering instant loans. However, there are several problems with banks and other traditional financial corporations.
First of all, not everyone’s loans get approved because such financial corporations keep a strict check on the credit history and they consider everything. So if a person had taken a long time to pay his EMIs 5 years ago, they will probably reject the loan.
Moreover, the interest rates are already rather high for normal loans, and if people opt for instant loans then the charges climb very steeply.
As a solution to this, there are some online loan companies that consider only the recent credit history and keep the interest rates rather minimal for instant loans. Moreover, the entire process is completely online so it becomes very easy for users to avail instant mini loans through these companies.
There are many such online loan companies that provide loans from their websites or web portals. However, we have consulted our app developers and curated a list of 4 unique app ideas for online loan companies. So if you are the CEO of an online loan company, or if you want to invest in an online loan app, this may be the right opportunity for you. We have mentioned how an app idea will benefit your company. As a bonus, we have also suggested some features that you could add to your app.
Table of Contents
4 Unique Mobile App Ideas For Online Loan Companies
Pay Later App
End of the month and no more budget left? This is the story of many students and employees who are just starting out their careers. These are the people who live from paycheck to paycheck and avoid spending money on things they like because they know they won’t be able to pay back.
When a new user is starting out on this app, you can offer them a limited amount of credit. Then as the user keeps using the app on a regular basis and carries out various tasks, you can keep on increasing the credit limit. You could make it mandatory for the users to upload their government verified documents so that you can identify and sue any defaulters easily. As an incentive, you could increase the credit limit of the people who complete the verification process.
Some other tasks to increase the credit could include:
- Inviting friends to sign up on the app
- Paying the dues before or on time
- Using the app regularly; the more you use it, the higher will be your credit limit
While some banks and government agencies do offer the option for pay later, but there are not many pays later apps by online loan companies. These kinds of apps make it easy for users to get instant mini loans for their shopping, travelling or any other needs. You can set an interest-free credit window of 15-30 days so that the users can comfortably pay back with their next month’s salary.
Here are some suggested features for this type of app:
- Transaction history
- Check current and previous bills
- Pay the bills
- EMI calculator
- Upload documents for verification
Peer-to-peer Lending App
There are many banks and financial corporations that offer loans, both online as well as offline. However, these corporations usually charge a high amount of interest and require a lot of paperwork. This can be avoided to a great extent when people borrow the same amount from individuals. However, it is possible that not everyone’s friends or family have enough money to give on loan.
On the other side, there are many investors who are looking to invest their money somewhere and get sufficient returns. This is a good option that will help them achieve the same while helping someone at the same time. A benefit of peer-to-peer loan apps is that the investors cannot charge high amounts of interest and it will be regulated by you. With this type of app ideas for online loan companies, you will ensure that borrowers are not exploited in any way.
Moreover, it is a safe investment for the investors as well. Since you will act as a mediator in between, they will be assured that you will safeguard their money and will handle any defaulters. This enables your target audience to build trust in you, therefore making your online loan company’s brand stronger.
Here are some features that we think you can add to your peer-to-peer loan app:
- Form for applying for a loan
- Transaction history
- EMI calculator
- Automatic EMI payments
- Option to invest money
Emergency Loan App
Life tends to be rather unexpected and mishaps happen all around us. There are many young people who come in need of urgent loans unexpectedly. Such people might be working jobs but they don’t have enough savings to cover accidents or sudden medical needs. To provide loans to such people in need, we have an app idea for online loan companies. By creating an app for this, your loan company will help people compensate people in urgent need of credit or cash.
This will be very beneficial to the people who take a loan from you since it will help them clear their dues when they need it. They will not need to submit a lot of paperwork and wait for approval for months. Of course, they will be submitting their documents so that you can verify their credit history. Based on their credit history, your online loan company can calculate the rate of interest and tenure of the loan. If the individual has a bad credit history, then you can definitely reject his request or charge a higher amount of interest.
To help you out here, we consulted our app expert and are listing down some features that you could include in your emergency loan app:
- Applying for an emergency loan
- In-app chat for doubts and queries
- Secured payment gateway integration
- Allow users to upload the soft copy of their documents for KYC and verification process
Personal Finance App + Instant Loan App
Often, people spend everything they earn and end up without any significant savings. For this reason, we suggest that online loan companies can develop an app that combines the features of 2 separate apps in one. It could be a personal finance app plus an instant loan app. On a regular basis, users can make use of the app to keep track of their daily expenses. And it could also be used to avail instant mini loans when needed. The type of these loans depends on you, you can offer personal loans, emergency loans, or loans for recreational purposes like movies and shopping.
This app idea would be beneficial for your online loan company because the number of app downloads would be higher than a normal loan app. The reason for this would be because this app serves your users in 2 different ways. It would be great for the users as well since they will be able to keep track of their finances and get an instant loan if the need arises for it.
Here are some features you can integrate into this app:
- Monthly reports for expenses
- Daily expense log
- Loan application
- In-app chat
- EMI calculator
Conclusion
So, did you like any of these app idea suggestions for your online loan company? We understand that you still might be having some doubts regarding app development like, “Where can I find a good mobile app development company to make these apps?”
We are right here! At Space-O Canada, we offer complete software solutions and mobile app development. So far, we have already developed more than 3,500 mobile apps for various clients in various industries. We can help you solve all the queries and guide you further for the app development process of your online loan company. All you have to do is fill-up the form in the footer. Our sales representative will get in touch with you soon and understand your requirements.
