How to Develop a P2P Lending App with Our White Label Solution?
The estimates of a consulting company PwC show that the P2P lending industry is growing at a great speed and will reach $150 billion by 2025. In this blog, we will discuss how can you get a share of this rapidly growing market by building your own peer-to-peer lending platform.
What is P2P lending?
This is nothing but a money lending mechanism in which the creditors and borrowers or individuals or companies participate together. This process is carried out without the participation of intermediaries like banks, credit brokers and any other traditional financial institutions. So, how are these relationships between creditors and borrowers built? Here, the P2P platforms come into the picture.
As there are no intermediaries, the interest rates are lower and the investor’s profit is greater. Basically, maintaining a bank becomes an expensive task. It needs renting premises, staff, computer equipment and other things following safety rules.
Now, if you multiply these by numerous branches, you will come to know why the credit rate is more than 10% whereas the deposit rate is as less as -2% in the bank. You should know it swallows all the profits.
However, Peer-to-peer lendings do not need any banking cost or real estate thing. It is also free from expensive equipment, So, the loan rate is more and the investor is benefitted with the profits.
Working of P2P platform is simple:
- People registering on the P2P platform are either the borrowers or lenders – investors.
- The borrower simply submits an application for the loan, he specifies the amount in the same. He also needs to enter the term of loan and information about himself.
- Your P2P lending platform checks out the risk and credit rating of the borrower to determine if the loan can be granted. It also sets an interest rate according to the term of the loan. This can be done either by oracles or special algorithms.
- The application sums up the pool that lenders can see.
- If the terms and conditions suit any of the lenders, a loan agreement is made.
The only problem with such a P2P lending platform is the platform itself. Why? Well, the customers are attracted to an app that is comfortable, reliable, secure and supports local languages. Not everyone is able to build a platform that is desirable by all.
What do we offer to make your P2P platform a success?
A Loan Lending Mobile App consists of the following key features:
⇒ Login- User can register in the system by entering the personal and professional details. They can set up an ID and password.
⇒ Apply For Loan- User can apply for instant loans by following a few steps. They need to select the money amount, EMI amount and agree with the GST and Processing fees for finishing the fund transfer.
⇒ Set payback period- The users can choose the payback period, the EMI and interest will get updated accordingly.
⇒ Loan Listing- Different loans based on the user’s credit score and other conditions will be displayed and will be available for the investors to see as well.
⇒ EMI, credit score and Interest calculation tool- This tool calculates the EMI and interest for the users depending on the payback period for the loan amount. The credit scores of the user depending on their credit history and salaries will be calculated using this tool.
⇒ Manual Loan entry and credit score- There is also an option for manual entry of loan amount for the users and they can manually get their credit scores through this option.
⇒ Payment Schedule and billing- The users can view their EMI schedules, due dates and completed EMIs.
⇒ Transactions- This shows a complete summary of the loan amount, withdrawal, available credit limit.
⇒ Variety Loans- The users are offered many different types of loans. For eg. education, home, travel, gold, wedding, personal, etc.
How can you develop a P2P lending app?
A P2P lending platform or app can be built with the help of the technological expertise of a software development partner. If you are looking for an app development partner, here are the steps you should anticipate to go through:
- Discussion and interaction with our sales manager and business analyst
- Project design phase and technical documentation creation.
- Accepting a collaboration model like a dedicated team, fixed-price, or time-and-material.
- Full-cycle development of appropriate features depending on your project and specifications.
- Testing, bug-fixing, and endorsement
- Maintenance and support or more development.
App development companies majorly involve business analysts to collect all of the specifications concerning the project and assure product fit for the market.
After we gather all the information, we produce various documents as blueprints for P2P lending platform development.
This helps us to keep on track and develop the product according to the demands within the predicted budget. The complete workflow is built depending on the methodology that seems fit for it. We believe to complete the tasks quickly but with absolute efficiency.
On the fulfillment of the project, you may assume particular results:
- You will be the owner of the product, its source code, documentation, and other assets as per our agreement.
- If there is a custom software development, you may be likely to patent solutions or techniques acquired in the process.
When the project is completed, the additional features which were not included in the project estimation document will be charged separately.
A professional P2P lending platform includes everything like:
- Custom design for a special niche of a P2P lending platform
- An active payment processing system
- Content management system for marketing and SEO objectives
- Automated KYC/AML verification process
- Debt and Equity financing
- Customized financing and settlement flow that is docile with your ordinances and business essentials
- Account management systems, search, and filter, etc.
Our White-label solutions to develop P2P lending app
The cost of developing a P2P lending platform can be a huge amount. You can actually opt for some white label solutions which are much affordable and can be easily integrated into your business and can be customized according to your business needs.
Our white-label product is designed for online crowdfunding portals based on equity, donations, and P2P loans. This is an ideal solution if you wish to plan to start your business with an MVP model and then scale up with an advanced version.
To know the cost and details of the white label solution, connect with us for a free consultation session and ask for a demo of the app.