How Much Does it Cost to Build an Instant Loan App in UAE?

What is a Money Lending App? 

An instant loan app development is a software solution designed to simplify and speed up the loan process. This happens to be both for borrowers and lenders. Now, these apps allow users to apply for various types of loans, such as:

• Personal loans 
• Business loans 
• Peer-to-peer (P2P) loans, directly from their smartphones.

Moreover, borrowers can fill out applications, submit required documents digitally, and receive loan approvals in a matter of days, all without visiting a bank. On the lender’s side, these apps help streamline the verification and approval processes by centralizing borrower data, automating interest rate calculations, and managing loan portfolios efficiently.

Truly, a loan app software solution is a great business idea to skyrocket your bottom line. Startups or conventional banks can easily connect with clients from around the world to offer their services at their fingertips. Contrarily, if you don’t have an instant loan app then you can miss a lot of business opportunities and your competitor can have the upper hand on you. 

That’s why, you must work with app developers in Dubai and know how your banking system can benefit from an instant loan app in UAE. 

How do Loan Lending Apps Work? 

In simple terms, an instant loan app development works by connecting borrowers and lenders through a seamless, digital platform. Here's a step-by-step breakdown of how they typically function:

• User Registration

The process begins with users (borrowers) creating an account and providing personal details such as name, address, income, and identification.

• Loan Application

Borrowers select the type of loan they need and fill out a simple application form. In some cases, they may need to upload minimal documentation like proof of income or bank statements.

• Credit Evaluation

The app uses built-in algorithms and AI to evaluate the borrower’s creditworthiness and repayment history. This can happen instantly or within a short period.

• Approval Process

If the borrower meets the lender’s criteria, the loan gets approved. In p2p payment apps, individual lenders may choose to fund the loan.

• Loan Disbursement

Once approved, the loan amount is transferred directly to the borrower’s bank account. It takes a few hours or days.

• Loan Disbursement

Borrowers can use the app to make repayments, set reminders, and track the loan status. Lenders can monitor repayments and manage loan portfolios efficiently.

This digital process eliminates the need for lengthy paperwork and traditional bank visits. In the next section, we’ll help you understand different types of mobile loan lending apps. 

10 Types of Instant Loan Apps

There are various types of loan lending apps available in the market. Each money-borrowing app caters to different needs and preferences. Here are some of the most common types:

• 1.Personal Loan Apps

With this money lending app, individuals can apply for personal loans for any purpose. This includes home renovations, vacations, or emergency expenses. They often offer quick approvals and flexible repayment options.

Examples: MoneyTap, Lendingkart, Bajaj Finserv Personal Loan.

• 2.Student Loan Apps

Designed for students, this loan app development in UAE provides loans specifically to cover education-related expenses. They usually offer lower interest rates and flexible repayment terms tailored to students.

Example: Prodigy Finance, CommonBond

• 3.Business Loan Apps

These apps help small and medium-sized businesses secure loans for expansion, equipment purchases, or working capital. They streamline the application process and offer specialized business funding options.

Example: Credorax

• 4.Peer to Peer Lending Apps

The instant P2P payment app connects borrowers directly with individual lenders, bypassing traditional financial institutions. Borrowers can often get loans at lower interest rates, and lenders can earn higher returns than traditional investments.

Examples: Faircent, iQuity

• 5.Microloan Apps

Microloan Apps are designed to provide short-term loans for quick access to a small amount of money. These loans are typically used for personal emergencies or to cover short-term financial gaps.

Example: SmartCoin

• 6.Loan Aggregator Apps

Loan aggregators act as platforms where borrowers can compare loan options from different banks or financial institutions in one place.

Example: Lendingkart

• 7.Digital Credit Card Apps

This loan app development offers virtual credit cards or lines of credit for users to borrow and spend money digitally. They often provide easy-to-manage payment systems.

Examples: LazyPay, Slice

• 8.Auto Loan Apps

You can work with an app development company in Dubai that focuses on building instant loan apps to provide money specifically for purchasing vehicles. They simplify the process of securing financing for cars and often have partnerships with dealerships.

Examples: Emirates NBD, Flex

• 9.Payday Loan Apps

These apps provide short-term loans to cover immediate expenses until the borrower’s next paycheck. They are usually high-interest, quick-to-access loans meant for small amounts.

Examples: CashNetUSA, Check 'n Go

• 10.Mortgage Loan Apps

A mortgage mobile loan app is designed to simplify the process of applying for and managing home loans. These apps help individuals secure loans for purchasing real estate.

Example: Rocket Mortgage

Remember, whatever money lending app solution you choose, it must have an unmatched UI/UX design to retain users. You can hire app developers in Dubai to get the desired results on a budget. 

List of Features that Influence the Instant Loan App Development Cost

• I.Customization

The level of customization required directly impacts the cost of building a money-lending app. A highly customizable app that caters to specific user needs will significantly increase development time and complexity. The more detailed and user-specific the customizations, the higher the development price.

• II.Easy loan calculation

Note that, including a loan calculator is essential for user experience. However, integrating advanced algorithms that can calculate will increase costs. A dynamic, real-time calculator that adjusts based on user inputs requires robust backend development, which adds to the expense.

• III.Chat support

Although instant loan apps offer great user experience where a borrower usually does not require assistance from a clerk. However, offering assistance and a live chat option can increase the chances of conversion.

Now, you can integrate AI-driven chatbots that can handle common queries or escalate issues to human agents. However, it can be more expensive than basic support systems, as it requires artificial intelligence programming.

• IV.Document management

Your instant loan app in Dubai must be able to handle documentation digitally to make the process smooth and efficient. This includes allowing users to upload, verify, and store important documents (e.g., ID proofs, and income statements). There are systems that are complex to implement and increase money borrowing app development costs.

• V.Integration of cloud storage

Cloud storage integration allows for scalable and secure storage of loan-related data, such as borrower details and financial documents. While cloud services reduce the need for physical infrastructure, the cost of integrating and maintaining cloud-based systems into loan app development can be high. This is especially true when dealing with large volumes of sensitive data.

• VI.Reports and analytics

Providing lenders with detailed reports and analytics adds a powerful feature but also increases the complexity of the development of loan lending apps. The app will require a robust backend with data processing and reporting tools, which can significantly add to the cost.

• VII.Regular repayments

You must integrate a feature that allows users to set up and manage regular EMIs. Additionally, ask app developers to create a system that can handle recurring transactions securely.  However, an option for users to modify or schedule payments requires intricate programming which raises loan lending mobile app development costs.

• VIII.Transactions record

A feature that records all loan-related transactions (e.g., disbursal, repayments, interest calculations) reflects your loan app’s transparency and accountability. Creating an accurate transaction history that users can easily access demands attention to detail and strong data management capabilities.

• IX.Convenient payment plans

Allowing borrowers to choose or customize payment plans. Whether they prefer monthly, bi-weekly, or custom repayment schedules. This adds another layer of complexity. The app needs to support flexible payment models while ensuring that loan terms and interest rates adjust accordingly.

• Other Factors

Beyond these loan app features, additional factors like regulatory compliance, security protocols, multi-platform development (iOS, Android), and ongoing maintenance also influence the overall loan app’s development cost.

Also Read: A Comprehensive Guide to BNPL App Development like Klarna or Tabby

Instant Loan App Development Stages and Their Costs

Going ahead, we’ve discussed the process of lending app development in Dubai and their involved costs. Let’s explore:

• Step 1.Planning and Research

This is the foundational stage where the concept of the loan lending application development is clearly defined. This way an app development company in dubai determines target users and does market analysis. It involves finding out the regulatory requirements, key features, and security protocols.

Cost Factors: Market research, competitor analysis, and defining app requirements.

Estimated Cost: $5,000 – $10,000 

• Step 2.Design Phase

In this stage, UI/UX designers create the loan app’s interface to ensure it’s user-friendly, intuitive, and visually appealing. Here, app developers create wireframes and prototypes to visualize the app's structure, navigation, and user flow.

Key Tasks:

• Creating wireframes and prototypes.
• Designing a seamless interface for easy loan applications and repayment tracking.
• Ensuring mobile-friendly design for multiple devices.

Cost Factors: The complexity of the design, number of screens, customization, and level of interactivity.

Estimated Cost: $8,000 – $20,000

• Step 3.Development Phase

This is where the core functionality of the loan borrowing application is built. The app’s back-end infrastructure is developed to handle various processes. At the same time, front-end development ensures a smooth user experience. The app is also integrated with third-party services like payment gateways, credit score APIs, and cloud storage.

Cost Factors: Number of features, platform (iOS/Android or both), tech stack (native or hybrid), third-party API integrations, security protocols, and database management.

Estimated Cost: $25,000 – $100,000

• Step 4.Launch and Marketing

Once the app is developed and tested, it’s prepared for launch on app stores. You should work hand in hand to build marketing strategies that drive initial downloads and attract users. This stage also includes beta testing and final adjustments based on user feedback.

Cost Factors: Marketing budgets, app store submission fees, and promotional campaigns.

Estimated Cost: $10,000 – $50,000

• Step 5.Post-Launch Support

After the app is live, it requires continuous maintenance and updates to fix bugs. It also requires introducing new features and ensuring compatibility with the latest OS versions. Remember, regular updates based on user feedback are essential for long-term success.

Cost Factors: Frequency of updates, customer support staff, and server maintenance.

Estimated Cost: $5,000 – $15,000 per month

Now, each stage plays a crucial role in the successful development of an instant loan app. However, the overall cost is decided based on your app goal and intent.

Bonus Read: Comprehensive Guide to Fintech App Development – Features and Benefits

Cost of Building a Loan Lending App in UAE

In simple terms, an instant loan app development can range from $20,000 to $80,000 or more based on your business goals. However, if you are willing to consider off-the-shelf SKDs then the development cost of your loan lending app can be reduced significantly. 

Now you see, the development cost of a loan lending app can vary widely based on several factors. The factors include:

• The App’s Complexity & Type
• The Platform you choose
• UI/UX Desing
• Feature-List 
• Application Architecture
• Location of the Development Team 

However, if you choose to work with a custom mobile app development company in Dubai then you don’t have to worry about the development intricacies. 

Also, you must know that the level of complexity of your loan app directly impacts the development timeline. For a full custom app development you must hire full-stack loan lending app developers in Dubai. Their proficiency with the latest technologies like Metaverse, IoT, and AR/VR will help you stay ahead of the curve. 

Leverage Apptunix Expertness for Instant Loan App development in UAE

Now the details that are mentioned in the blog about loan lending app development at just starters. There are different complex phases that you need to go through. And for that, you must partner with a reliable mobile app development company in Dubai to achieve your business goals. 

Apptunix has been leading the tech industry for 11+ years. You can partner with us and leverage our services for loan lending app development in Dubai. Our force of 250+ app developers is well-versed with the latest technologies and frameworks to create the most stunning money-lending apps. 

After the pandemic, people usually prefer to get almost all kinds of banking services at the convenience of their phones. That’s why, banking organizations and startups are increasingly investing in banking solutions like on-demand money lending apps. 

 So, if you want to tap into this segment then now is the best time. You can reach out to our expert and get first-hand information regarding the loan app development process. Go ahead, and schedule a call now!