July 6, 2026
Streamline participant loan processing with e-loan service from RecordkeeperDirect
More and more, Americans are borrowing money from their 401(k) accounts during periods of economic stress or uncertainty. Third-party administrators (TPAs) and plan sponsors can help get those funds to participants quicker by processing these loans more efficiently — at no additional cost — with the electronic loan (e-loan) service available in RecordkeeperDirect®, Capital Group’s retirement plan platform.
This digital service eliminates paper loan forms and reduces manual administrative tasks. Features include online loan requests and approvals, real-time notifications and loan policy creation.
By adopting e-loans, both TPAs and plan sponsors can benefit from faster loan processing, improved security and reduced administrative efforts.
RecordkeeperDirect’s e-loan service includes:
- Online participant loan application process — customized to reflect the loan provisions/options selected by the plan sponsor, accessible via the participant website and app.
- Creation of loan documents and participant disclosures, including a loan policy adopted by the plan sponsor, individual loan documentation, amortization schedule and promissory note.
- Support for personal loans, mortgage loans and refinancing, where applicable.
- Online approval by TPAs and plan sponsors.
- Loan monitoring services, including notification when a loan is at risk of default.
Comparing loan service options
Take advantage of electronic loan service
Please note that electronic loan service:
- Can support personal loans, mortgage loans and loan refinancing.
- Requires all loan requests to be submitted electronically; paper and PDF forms will not be accepted.
- Is not avaiable to plans that require spousal consent for retirement plan loans. Other limitations may apply.
Want to find out more? View this fact sheet: electronic loan service for RecordkeeperDirect retirement plans.
Or call us at (888) 777-1579.