Using electronic signature consent for signing loan documents.

Get answers to some of your e-signature questions.

Ultimately, your lender oversees how your loan is issued — whether that’s the traditional paperwork you review and sign in ink or a digital suite of documents that you can review and sign online with your computer or tablet. That said, as more banks, financial institutions, and financial services organizations go digital, you may already be getting much of your loan paperwork online.

Learn more about electronic signature consent for loan documents and how electronic signatures work for the next time you need to complete loan paperwork.

What is electronic signature consent for loan documents?

Electronic signature consent, also referred to as an e-signature, involves a signer digitally accepting and signing an agreement. It’s a legally binding method that indicates consent or approval of a document.

A signer can electronically sign a document by taking some sort of action that demonstrates a signature. For example, a signer can click “I accept” or “I agree” to indicate consent or use an electronic signature to e-sign the document. The signer’s action is recorded in the document.

What to know about signing loan documents electronically.

Here’s what you need to know about electronic signature loan documents.

Are electronic signatures legally valid for loan documents?

Yes. The US Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) place electronic signatures on the same legal footing as hard-copy signatures. For example, your lender may request your electronic signature on the promissory note, which is an agreement that the borrower promises to pay back the loan plus interest.

Simply put, electronically signed loan documents are legally just as valid and secure as a pen-and-paper signature.

How do I sign loan documents electronically?

Your loan lender will create and send electronic loan documents to your email through a secure platform. You’ll click the specified link and then follow the steps to electronically sign the loan document. You may indicate your signature by clicking “I accept,” typing in a PIN number or your name, or signing with your finger. You can retain a copy of your e-signature loans for your own records.

Is signing loan documents electronically secure?

Though they may seem daunting, digital signatures can actually be more secure than paper ones. Digital documents are harder to lose than paper ones. After signing electronically, you’ll have an easy-to-track online loan document trail that you can organize, copy, and export — no expensive filing cabinets or elaborate filing systems required. All your electronic signature loan documents will be in one place, including the security agreement. You can then download the documents to a hard drive on your computer.

Do I have to use electronic signature consent for loan documents?

No. Your lender must obtain your consent before conducting an electronic transaction. Consult legal experts for more information.

Benefits of electronic signature consent for loan documents.

Are you curious about testing out electronic signature for your loan documents? Here are just a few of the benefits of using electronic signature consent.

• Convenience. Electronic signature consent for loan documents makes it easy to sign documents from anywhere, at any time. Collecting online signatures is less time-consuming and less expensive, creating a smoother, more convenient experience for all parties involved.
• Sustainability. Did you know that an electronic signature means less paper waste? Reducing paper consumption by using digital signing is a more sustainable method than numerous paper copies of wet ink signatures.
• Efficiency. Learning how to sign electronically makes both the lender’s job and your loan process more efficient. Since the loan document is managed digitally, you don’t need to scan or manage physical paperwork, and the signed document is uploaded immediately.
• Security. Providing your electronic signature on a secure platform ensures its security. You’ll likely be able to see the document’s history, such as when it was sent and received, signed, and opened by the lender, so there is no room for tampering, as with a paper signature.
• Digital audit trail. Using an electronic signature adds a time stamp in the process, which helps establish authenticity and prevents any future disputes.

How long are electronic copies of loan documents accessible?

Once you have electronically signed your loan document, you will receive an email that includes a copy of the signed document. Through this email, you can access the electronically signed copy of your loan document. However, don’t forget to export and save this copy after receiving the email link. Saving your e-signature loans is important for your personal records and ensures lifetime access, so remember to save them securely on your personal computer.

If you’re trying to access your electronic loan documents through your lender, the duration of time that they keep your files may vary. Check with your specific loan company or lender for exact information.

Organize loan documents and forms.

Make sure to file and organize digital copies of loan documents and other essential forms on your personal hard drive or in an online cloud storage system. Also consider keeping a hard copy filed in a safe place in your home, just in case.

Learn more about how to use e-signatures for all your financial needs — and how Adobe Acrobat for business can help you keep all your forms in one secure place.