Introduction
Once a loan has been confirmed as accept, a loan agreement can be sent to the borrower for electronic signature.
Please note:
Loan agreements must be exported from the core banking platform as a .pdf.
The agreement is signed by one party for each side (i.e. the lender plus one signature from the borrower).
To reduce effort, the signature box includes a printed name and date stamp. Because of this, there's no for each party to enter their name and the date of signing.
When returned the document will include an audit trail providing details of all transactions relating to its signing, e.g. date and time the agreement was sent to each party and signed.
An automatic chaser email is sent every three days if the agreement remains unsigned.
The decision engine does not store the signed agreement. This is sent to the designated email address.
The original loan agreement (before signature) is removed after 14 days if the applicant does not sign. It is removed after 90 days if they do sign.
Legal status
In the UK electronic signatures have been legal since the introduction of the Electronic Communications Act 2000. The UK now adheres to the European Union’s eIDAS regulations that came into force in July 2016.
Step 1: Set final status
The option to send a loan agreement for e-signature requires the loan to be given a final accept status. Once the status has been applied the option to send agreement appears:
Step 2: Select agreement
Clicking 'send agreement' brings up a dialogue box. Select the loan agreement that you wish to send:
Once you've found and uploaded the document it will appear in the dashboard. You can remove the agreement, or click 'send for signature':
Step 3: Confirm the email address
The email address for the borrower will be automatically populated, using information provided during the application. If the email is incorrect or has since changed, you can enter a new email address:
Step 4: Send the agreement
Click OK to send the agreement.
The agreement will be sent to the lender's email address for signing first. This will arrive in the designated in-box.
Step 5: Signing the agreement
Clicking the link in the email will send the signer to the loan agreement. Click 'please sign here' to proceed.
You can draw your, print or upload your signature. All are legally binding. When complete click 'confirm'
Note: there is no need to date the agreement. On the final document the signature will have a time stamp and will display the full name of the signer.
Click 'submit document'
Once submitted the borrower will receive an email with a link to the document to sign. When they click the link, the borrower will be taken through the same process as the lender, detailed above.
Step 6: Receive agreement
One the agreement has been signed, a message will be sent to the designated email address at the lender with a copy of the agreement as a .pdf attachment.
The borrower will also automatically receive a copy of the agreement as a .pdf attachment.
Optional: Check status
Once the agreement has been sent you can click 'check status' to review the progress of the document.
Document status provides an overview of the e-signed agreement's progress. It details the parties to the agreement and provides a complete record of transactions related to its processing:
A copy of the above audit trail is also provided on an additional final page within the loan agreement once it is completed.
Next: Assess a loan