Tackle Your Emergency Expenses With These Money Lending Apps!

Do you often find yourself in situations where you’re out of cash before your next paycheck? If yes, then any financial inconvenience that comes your way will cause you to opt for a payday loan or, even worse, throw those expenses on your credit card. It does seem like a good solution at first, but it can lead to long-term financial debt with uncontrollably high-interest rates! Therefore, before you start contemplating your life decisions, let me break the good news to you – there are various applications available today that can offer you quick cash! This means that you can finally stop living paycheck-to-paycheck and use money-lending apps to tackle your unforeseen expenses. 

The global digital lending platform market size was valued at USD 7.04 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 26.5% from 2023 to 2030.

We’ve researched all the money lending apps available and hand-picked the top ones for you to use and manage your funds. Check out these payday loan alternatives and decide for yourself which one suits you best. 

What is Money Lending App?

A money lending app is a digital platform that allows individuals or businesses to lend and borrow money online. These apps have gained popularity due to their convenience and ease of use. They typically connect borrowers in need of funds with lenders willing to lend money for a specified interest rate.

Here’s how a typical money-lending app works:

1. User Registration: Users need to create an account on the app by providing their personal information, contact details, and sometimes financial data.
2. Verification and Credit Checks: Many apps perform verification and credit checks on the borrowers to assess their creditworthiness and ability to repay the loan.
3. Loan Application: Borrowers can apply for a loan through the app, specifying the loan amount, purpose, and repayment terms.
4. Lender Matching: The app’s algorithm matches borrowers with potential lenders based on their preferences, loan requirements, and risk profiles.
5. Loan Approval and Disbursement: Once a lender approves a borrower’s loan application, the funds are disbursed to the borrower’s account.
6. Repayment: Borrowers repay the loan in installments, which typically includes both the principal amount and interest. Some apps offer flexible repayment options, including autopay and reminders to ensure timely repayments.
7. Interest and Fees: Lenders earn interest on the money they lend, and the app may charge fees to borrowers and lenders for using their platform.

5 Money Lending Apps and Payday Loan Alternatives

Here are the top five money lending apps available today that effectively serve as payday loan alternatives.

• Earnin – One of the Best Money Lending Apps 

With Earnin, you don’t need to wait for your employer’s payday. You can access up to $100 by using your paycheck as collateral. Moreover, this application is one of those payday loan alternatives that don’t charge any interest or fees. The day you receive your pay, Earnin will automatically deduct the total cashed amount. 

Therefore, you can receive quick cash without paying exorbitant interest rates! Although there is an option available that allows you to offer tips, it is entirely based on your experience with this money-lending app. This means that you can also choose to pay $0 if your experience was below satisfactory. 

Features of ‘Earnin’ Payday Loan Alternative

• • Eligibility: You’re required to have a regular and steady paycheck schedule to use Earnin. You should earn weekly, bi-weekly, or monthly and have a single checking account that contains more than 50% of your pay. Moreover, you’ll need to fill an electronic timesheet so that the application can keep track of your working hours. 

• • Earnings: The application doesn’t take into account tips and commissions. It only considers the pay from a single employer, which is transferred into your checking account by direct deposit. 

• • Overdraft Prevention: The application will notify you when your account balance becomes low, and thus, may prevent you from over-drafting and save you from the overdraft fee. 

• • ‘Lightning Speed’: This feature allows you to receive money the same day you drop a request. Users who don’t have access to this feature receive the amount in 2-3 business days. Moreover, all banks do not support this feature.

Pros and Cons of Earnin 

Here’s a quick way to have a closer look at money lending apps – its good and bad points. 

• Brigit – Quick and Easy Money Lending Apps

Related: 10 Best Money Making Apps 

Brigit is one of the greatest money lending apps available today. It offers up to $250 of cash advances along with other features such as a budgeting tool. However, unlike Earnin, Brigit offers its services on a subscription basis. You will be required to opt for their membership to access most of its features. 

Moreover, the application has various restrictions. You will need to qualify for a ‘Brigit Score’ to access cash advances, which should be 70 or higher. Factors taken into consideration are your spending habits, banking history, and your income. Overall, it is one of the best payday loan alternatives that helps you cover monthly expenses.

Features of ‘Brigit’ Payday Loan Alternatives

• • Auto-advances: The application auto-transfers the amount in your bank account when it thinks you are close to overdrawing. This helps users prevent overdraft fees and manage their expenses simultaneously. 

• • Subscription-based: Brigit offers most of its services and features to users who opt for their monthly subscription, priced at $9.99/month.

• • ‘Brigit Score’: You are given a score based on your income and banking history, which would act as an eligibility criterion for taking loans. A score between 70-80 is considered fair, 80-90 is good, and 90+ is highly desirable. 

• • Auto-deduction: The application automatically deducts a recurring direct deposit from your checking account the day after receiving it. You’ll receive a notification a day before the deduction. 

Pros and Cons of Brigit

Here’s a quick way to have a closer look at money lending apps – its good and bad points. 

• Dave – One of the Better-known Money Lending Apps

Dave provides you with quick money within a few simple taps and clicks on your smartphone. Although the application does not charge any tips or interest, it charges a monthly subscription fee like most money lending apps. The maximum cash advance amount offered to users is relatively low compared to other paycheck loan alternatives. 

To use the app, you’ll be required to have a stable paycheck schedule and receive the pay via direct deposit. Moreover, it also alerts the users in various situations, such as when they’re close to overdrawing or when their bills are due. To sum it up, when your checking account balance starts to get considerably low, Dave will help you pay your expenses and save you from excessive overdraft fees.

If you wish to create a money lending application for your organization, feel free to get in touch with us and get started with your project today! 

Features of ‘Dave’ Payday Loan Alternatives

• • Low withdrawal amount: The application allows you to receive a maximum of $100. Once the application offers the cash advance, it doesn’t allow you to take more amounts unless the due payments are made.
  • Subscription-based: Dave offers most of its services and features to users who opt for their monthly subscription, priced at $1/month. This amount gets deducted from the linked bank account.
  • Standard vs. Express: You can receive cash advances within three days of placing your request if you opt for the standard feature included in your subscription. If you opt for the express feature (chargeable), you may be able to receive the cash advance the same day it was requested. 
  • Alerts: The application gives various alerts and notifications to the users regarding their account balance, due bills, etc. 

Pros and Cons of Dave

Here’s a quick way to have a closer look at money lending apps – their good and bad points. 

• MoneyLion – One of the Better-known Money Lending Apps

Related: Top 10 Donation Apps For Nonprofits – 2021 Edition

MoneyLion is slightly different from the above-mentioned money lending apps and offers cash backs, credit-builder loans, online banking services, etc. It is a financial services company and one of the best payday loan alternatives that allow you to build credit. Thus, if you make payments on time, you can build a solid credit history. 

Features of ‘MoneyLion’ Payday Loan Alternatives

• • Credit-builder loans: The application allows you to receive credit-builder loans up to a maximum of $1,000. However, loan approval depends on your finances and the checking account linked to the application.
  • Prepayment Penalty: You can pay off your loan early without a prepayment penalty fee.
  • Subscription-based: MoneyLion offers some of its services, such as credit-builder loans to users who opt for their monthly subscription, priced at $19.99/month.
  • Deferment Support: The company might allow you to defer payment in situations where you cannot make the payment on the said date. However, you’ll be required to submit an application for the same.

Pros and Cons of MoneyLion

Here’s a quick way to have a closer look at money lending apps – its good and bad points. 

• Branch – Top Quality Mobile Financial Services

With Branch in the picture, you can quit your worries about your financial emergencies. Instead of opting for payday loans or credit cards, you can access your paycheck early and save yourself from the high-interest rates. 

Moreover, the platform is similar to the aforementioned money lending apps as it doesn’t charge any interest or fee. You can request cash advances for the hours you’ve worked and tip the service. 

Features of ‘Branch’ Payday Loan Alternatives

• • Eligibility: If you wish to use this application, you will be required to have a minimum of two direct deposits from your employer. Moreover, the amount must be more than $40.
  • ‘Instant’ Option: If you wish to receive your cash advances instantly, you can opt for the instant feature and receive your money immediately. However, there’s a fee for this feature, which ranges from $2.99 to $4.99, depending on your loan amount. 
  • Cash Advance Limits: Initially, the application offers cash advance limits. However, as you continue to use the services, the limit extends. 

Pros and Cons of Branch

Here’s a quick way to have a closer look at money lending apps – their good and bad points. 

Must-Have Features of a Money Lending App

1. User Registration and Authentication: Allow users to create accounts and log in securely using email, phone number, or social media credentials. Verification procedures should be in place to ensure the legitimacy of users.
2. Loan Application and Approval: Enable borrowers to apply for loans through the app by providing necessary details like loan amount, purpose, and repayment terms. Implement a streamlined approval process to notify users about their loan status quickly.
3. Loan Repayment Management: Provide borrowers with a convenient way to make loan repayments through the app. Offer multiple payment options, automatic deductions, and timely reminders to reduce the chances of missed payments.
4. Interest and Fee Calculation: Incorporate a mechanism to calculate interest rates and fees based on loan amount, duration, and other relevant factors. Display transparent information about the total repayment amount to borrowers.
5. Credit Scoring and Risk Assessment: Integrate credit scoring systems and risk assessment algorithms to evaluate the creditworthiness of borrowers accurately. This ensures responsible lending and minimizes the risk of defaults.
6. User Profiles and History: Create user profiles that store relevant information, loan history, and repayment behavior. This data can help in personalized loan offers and build trust among users.
7. Notification and Alerts: Implement push notifications and in-app alerts to keep users informed about loan status, upcoming payments, and other important updates.
8. Document Management: Allow users to upload necessary documents securely for loan verification and approval. This feature streamlines the application process and reduces paperwork.
9. Customer Support and Chat: Offer a chat or messaging feature to connect borrowers with customer support representatives for resolving queries, clarifying terms, and addressing concerns.
10. Security and Privacy: Ensure robust security measures to protect user data, including personal and financial information. Use encryption and secure protocols to prevent unauthorized access.
11. Loan Tracking and History: Provide borrowers with access to their loan history, payment schedules, and outstanding balances. This feature fosters transparency and helps users manage their finances effectively.
12. Loan Calculator: Include a loan calculator that allows users to estimate their potential loan amount, repayment amounts, and interest rates before applying.
13. Integration with Payment Gateways: Partner with reliable payment gateways to facilitate seamless and secure transactions between lenders and borrowers.
14. Legal and Compliance Information: Display clear and comprehensive terms and conditions, privacy policies, and legal disclaimers to build trust and comply with regulations.
15. Reviews and Ratings: Allow users to rate and review their borrowing or lending experience. Positive reviews can attract more users, while constructive feedback helps improve the app.

How to Develop a Money Lending App

Developing a money lending app requires careful planning and execution to ensure its success. Follow these eight steps to turn your idea into a reality:

1. Market Research and Conceptualization

Before diving into app development, conduct thorough market research to understand the existing competition and identify gaps in the market. Survey the target audience to gather insights into their needs, preferences, and pain points related to borrowing and lending money. Use this information to conceptualize your app, define its main goals, outline user characteristics, and create a feature list that sets your app apart from competitors.

2. Legal Considerations

Ensure that your money lending app complies with local laws and regulations governing financial services and lending. Consult with a team of financiers and lawyers to understand the legal requirements and develop a loan agreement if necessary.

3. Platform Selection

Decide on the platforms your app will support, such as mobile (Android and iOS) or web-based applications. Consider your target users and their preferences to determine the most suitable platform for your lending app. Utilizing cross-platform development frameworks like React Native can accelerate the development process.

4. Assemble the Development Team

Choose the right development team for your money lending app. You can opt for an in-house team, collaborate with freelancers, or hire an outsourcing company. Weigh the pros and cons of each option to find the most suitable fit for your project’s goals and budget. Outsourcing companies often offer a balance of expertise, guaranteed results, and cost-effectiveness, making them a popular choice for developing a Minimum Viable Product (MVP).

5. Prioritize Features

Work closely with your development team to prioritize app features based on your budget and timeline. Employ techniques like MoSCoW prioritization, which categorizes MVP functions into “must have,” “should have,” “could have,” and “won’t have” features. This approach ensures that you launch with essential functionalities while leaving room for future enhancements.

6. Focus on UI/UX Design

A simple yet visually appealing design is essential for attracting users to your lending app. Prioritize UI/UX design to create an application that offers a seamless and enjoyable experience to borrowers and lenders alike. Intuitive navigation and clear calls-to-action will enhance user engagement and satisfaction.

7. Frontend and Backend Development

Divide the development process into frontend and backend development. Frontend developers will focus on creating the user interface and ensuring a smooth user experience. Backend development involves handling transactions, integrating with servers for data storage and user authorization, and implementing robust security measures.

8. Testing and Launch

Before launching your money lending app in the market, conduct rigorous testing to identify and fix any bugs or issues. Once you’ve resolved all possible errors, release the app to your target audience. Collect user feedback and analyze user behavior to identify areas for improvement. Based on this feedback, consider adding additional features or enhancements to take your app to the next level.

Conclusion

And that’s a wrap! This was our blog post on the Top 5 Money Lending Apps and Payday Loan Alternatives that one can use to receive cash advances. These applications make the loan process and experience much more manageable and help you understand your spending habits better.

Moreover, if you wish to create a money lending application for your organization, we have solutions for that too. 

Feel free to get in touch with us and get started with a world-class app today!