Being in the digital world, we all have become great fans of accessibility and convenience. Online convenience has been a part of our everyday functioning. The most dramatic change has been seen in the financial sector. From banking to investment, post-COVID, the millennials have found the best way to look into their financial requirements.
Fintech is a vast and promising market. Every individual gets the query cleared in seconds with AI assistance. They get insights on how, when, and where to invest, transaction details, bank transfers, loans, etc., just a click away.
The market is estimated to reach US$439.80 in 2023. And as of 2024, a further increase is expected at a CAGR of 33.6%. A considerable part of this tremendous increase in online finance services is because of instant personal loans.
The personal loan market is all set to reach $719.31 billion by 2030. It is said to get this figure at a CAGR of 31.7%. Isn’t it incredible? The numbers are insane.
What are the growth driving factors of the online loan app market?
We all have money requirements at some other point of time in life. The only difference is it can be a luxurious requirement or an emergency one. Everyone needs a lending hand to cover their emergency expenses or needs in time.
With the growing lifestyle trends, there is an outrageous requirement for other economic and statutory needs. There is an urge to buy a good house, car, and many other luxurious items. Apart from that, health emergencies also play a significant role in such instant loan online services.
With the digital evolution, these loan apps work as a newer version of brick-and-mortar banks or credit unions. The user finds it easy to navigate the loan app as per his needs, ask for assistance, and keep the loan plan he desires. And, since there is no time limit to access it, i.e., apps or websites never close, there is no worry of filling and submitting forms & other hassles to do it during work hours. Everything is done in one’s leisure hours.
Let’s look at some of the popular loan lending app development. If you are eager to invest in the fintech genre, witness these competitors closely.
6 Best Instant Personal Loan Apps to Look in the Fintech World
#1 MoneyLion
The finance app handles all mobile banking and personal finance resources. It is popular among the money lender apps because it has Instacash Advance, which allows users to receive up to $500 as a loan against a future paycheck.
In other perks, it gives users no monthly fee, additional interest, credit check, or reports. You need to touch the request button on the app after linking your bank account and choosing the loan amount.
You can start by borrowing just $10 and work up to borrowing advances of up to $500. It is best to borrow money within your limits before the paychecks arrive.
For a MoneyLion member, the personal loan app has Creditbuilder Plus, which allows personal loans at a monthly charge of $19.99. Such a loan also helps increase your credit score, as the company presents your report to the credit bureau. And the app has also proved that half of the users have received a credit report of an increase of 27 points.
#2 Dave
The loan app allows a user to borrow money against a paycheck. And thus, it helps individuals earn some cash on the side. It is similar to MoneyLion. The app has an ExtraCash feature that gives $500 as a borrow for upcoming paychecks. There is no hidden or extra interest charged for it.
Apart from it, the loan lending app development has no credit checks. It just has a simple process of signing up to borrow the sum. The money is sent directly to the Dave account inside the app. One needs to pay back the loan on the agreed or selected date. It has an alternative through which you can buy some more time for your loan and extend the period without late fees being imposed.
For a more balanced financial aid, the loan lending app online provides you with a Side Hustle. It has built up a strong network of business partners to generate revenue. You can search for employment opportunities on the app and apply for gig jobs directly from your phone.
Dave stands out because of his focus on borrowing and earning because it is intended to foster a sound financial lifestyle.
#3 Earnin
Tap into the funds which you are already earning. Access your payday advances instantly without interest, credit checks, or surprises. Get up to $100 per day with a ‘Cash Out’ loan of a maximum of $750 per pay period. When you get your payday, the loan app deducts $100. One can also use an express fee of $.99 to $3.99 to avail of lightning-speed programs. Also, a user gets money in two to three business days.
A user only needs one check to be deposited in his bank account. Create a profile and grant access to check your account to get total work hours. After you select a sum to borrow, it shows the option of how you would like to receive it (fees or tips). The app provides you with a borrowed amount minus any costs or tips to give you a track record. It also contains an engaging Tip Yourself program daily. Users can keep $1 to $50 aside and avoid taking advances on a paycheck.
#4 Chime
The banking app keeps your money safe by providing an overdraft of $200 fee-free. There are no monthly fees, yet a user gets paid early with direct deposit. In other benefits, a user can pay anyone without a transfer fee.
You can use your Chime deposit account to perform transactions even if there isn’t enough money in it at the time by using the SpotMe loan feature from Chime. With this overdraw option, you can borrow up to $200 without paying any costs. The loaned amount will be returned from your upcoming direct deposit.
Apart from that, Chime Credit Builder is a credit card service provided by Chime. It enables you to borrow money while using your assets as security. Your Chime checking account’s funds will be transferred to a Credit Builder account to secure the credit line. There is no extra interest or yearly charge. Your prompt payment will be noted on your credit report, assisting you in establishing credit.
#5 Cash
The peer-to-peer loan application allows you to send and receive money with ease. One can pay bills and buy-sell stocks, bitcoins, etc. The Borrow feature lets users take out short-term loans of $20 and $200. You will be charged 5% of the loan amount for the four-week repayment period. You might either sign up for autopay or use the app to transmit the money to repay the loan. If you cannot pay the whole amount due, Cash App will charge a late fee of 1.25% each week until it is paid back.
It is only possible for some to use the borrowing option. If you can, you can tell because it will be indicated in the app’s menu. Cash App examines your app usage history to assess eligibility. You need to routinely utilize the site and have a strong credit rating for it to be made available.
Also read: Does Chime Work With Cash App?
#6 Branch
Eligible employees can get up to 50% of their earned pay early using the Branch app. There is no expense to the employee and no credit checks.
The cash advance feature of the Branch is exclusively accessible to employees of partnering businesses. The Branch works with the employers to get employee attendance records and estimations of pay earned. When you use the app to request funds as an employee, the sum is credited to your Branch account.
You will only pay something if you choose a basic deposit. However, for a modest cost, you can choose the quick deposit option if you need the money right away.
Thus, there are numerous benefits of an instant loan app. It can funt you fast and manage loans automatically. You can choose your sum and adjust it according to your need with time. And the best thing about the solutions is they do not require applicants to have good credit to borrow money. Instead, they help in building credits. Also, there are no hidden charges.
On a concluding note!
Online lending is an ever-growing business. Everyone needs instant money to fulfill certain needs. The genre is about easy borrowing and shuffling the earned income into the banking system. As mentioned earlier, the apps have proved to be the best in online money lending and security. If you want to build a loan app or are eager to study:
- Look at these competitors.
- Approach an experienced software development firm and get more information on it.
- Invade the digital space with the correct set of features and become a behemoth as these money lending apps.
Get yourself up and going with the world of fintech and finance services.
