Loan management software development: borrower apps for loan servicing

A loan management system (LMS) services a loan after payout: the loan account, the repayment schedule, interest, payments, arrears and closure. A loan origination system (LOS) takes the loan from application to payout, and the borrower's app or portal is a third layer that talks to both but is neither. Loan management software development, as we do it, means building that third layer and connecting it to the lender's core system. Application and payout are covered on our fintech software development page.

The main risk in loan management is a balance or a schedule that does not match the agreement. In our projects the loan book, interest, the repayment schedule and loan statuses stay in the client's core system, and the app shows what that system holds.

We have built and developed Aasa24, the lending app of Aasa Polska, since May 2023. Since January 2026 we have been building the mobile app of AvaFin Poland. Both are loan institutions supervised by the Polish Financial Supervision Authority (KNF).

Setting up loan servicing means two separate decisions: the ledger and the borrower app. The ledger is the loan management system, either a product from a vendor or the core system you already run. The borrower app is the layer your customers see. In our projects the ledger is the lender's existing core system, and our app integrates with it.

White label lending platform or your own app?

A white label lending platform gives you the vendor's borrower app under your brand, and its screens, loan states and release schedule follow the vendor's product. Your own app follows your core system and your release plan, with a screen or a message for every state your core system has.

What affects the scope?

The scope depends on the loan states your core system has, the self-service flows the borrower needs and the integrations with payments and bank account checks. Basic discovery is free, and after the discovery workshop described under How we work we estimate the cost, timeline and team for a borrower app on your core system.

In loan servicing software, the borrower portal is where the customer sees what is owed and when, and acts on it. It shows the amount due and the due date or the delay. It takes payments, offers early repayment, payment holidays, refinancing and extensions, and keeps the documents and the loan history in one place.

Aasa24

The Aasa24 borrower pays an installment, makes an early repayment, takes a payment holiday or refinances, with no call to the contact center. Payment holidays came to the app in November 2023 and refinancing in August 2024. The agreement, the repayment schedule and the repayment history can be downloaded as PDFs. The loan list can be filtered by status, with the filter running in Aasa's core system, and the schedule lists only active installment plans.

Aasa24 also has a payment card with a renewable limit, and its repayment screen shows the minimum amount due.

AvaFin

The account area of the AvaFin app shows the amount to repay, the due date or the delay, the loan history with documents, and repayment and extension offers. A loan extension has its own path: the customer requests it, follows its progress and can cancel it. Some extension types ask for a document or a guarantor's statement, added from the camera or from files.

Every borrower screen depends on the loan's state. Aasa24 turns more than 40 application and loan states into plain messages.

The AvaFin app handles 18 loan states, and each one has its own view on the home screen and on the loan screen. They include open, in extension, overdue with and without an extension, with a bailiff, in court, sold, assigned to another creditor, rejected and in acceptance. In AvaFin the loan state matrix is the single source of truth for screen design.

Loan servicing problems the app has to prevent

• A screen that offers payment when nothing is due. In Aasa24 the Pay button appears only when there is something to pay, and an installment shows as paid according to rules agreed with Aasa.
• An extension offered for a loan that no longer qualifies. In the AvaFin app the offer disappears once the latest loan is repaid.
• A payment that has not reached the app yet. Payment and extension in AvaFin run in AvaFin's own webview, and the app refreshes the status when the customer comes back.
• A core system that is down. The Aasa24 app handles it without losing the customer's data.

A borrower app takes repayments through a payment gateway and verifies the borrower's bank account. In Aasa24 repayments go through the Autopay payment gateway. The integration handles a change in the amount due and receives payment notifications over a secured channel.

AvaFin customers verify a bank account by logging in to their bank through the Kontomatik service, using open banking, or with a verification transfer through Autopay. The check runs at registration and in the loan application.

A lending app connects to the core lending system through an API between that system and the app's backend.

In Aasa24 the backend is ours: Django, PostgreSQL and Celery on AWS, with infrastructure in Terraform. It takes loan data, statuses and calculator parameters from Aasa's core system and shows the customer's data from that system in the app. Aasa's team changes calculator parameters, documents and messages in an admin panel, with no new release in the app stores.

In the AvaFin app the core system decides the order of the loan application steps, and the app displays them. Calculator prices come from the same pricing engine as the core system, so the app and the core system price a loan the same way.

When a payment is late, the borrower should be able to sort it out in the app. Our part of debt collection is what the borrower sees: the amount due, the payment, the extension and the payment holiday. The collection process and the contact strategy stay with the lender.

CCD2, Directive (EU) 2023/2225, applies through national rules from November 20, 2026 (Article 48). As of October 2026, Poland has not published a new act implementing it. After payout, CCD2 asks lenders to offer forbearance before enforcement, to detect consumers in financial difficulty early and to refer them to debt advice (Articles 35 and 36). Forbearance may mean extending the term, deferring installments or a payment holiday. In a borrower app that calls for a help path and forbearance options before the case moves on.

We build the app and keep developing it after launch. On Aasa24 the same core team has worked since 2023, and a new version ships every 3-4 weeks on average. The first public release of Aasa24 came in November 2023, less than 6 months after work started. Every pull request goes through code review.

New projects start with a free discovery workshop, which gives you an MVP scope, a roadmap and an estimate of cost, timeline and team.