Which E-Signature for Which Document? A Use-Case Guide for Indian Lenders, Insurers, HR and Procurement
Lenders, insurers, HR teams, procurement and real estate each sign different documents with different risk. A decision guide mapping each use case to the right Indian signature method, the stamping requirement and the consent step.
E-signatures stopped being a legal curiosity years ago; the question now is operational: which method, for which document, with which stamp and which consent. Pick a method that is too weak for the document and you carry evidence risk; pick one that is too heavy for a routine consent and your completion rates fall. This guide maps common Indian use cases to the method that fits. Position as of October 2026.
The three methods in one line each
- DSC (section 3, IT Act, 2000): token-based digital signature from a licensed Certifying Authority; highest assurance; needs the signer to hold a certificate.
- Aadhaar eSign (section 3A and the Second Schedule): OTP or biometric authentication with UIDAI, one-time certificate; satisfies section 5; available to Aadhaar holders only.
- Platform signature with audit trail: click, type or draw with identity events recorded; evidences an electronic contract under section 10A but is not a section 5 signature.
All three can carry tamper evidence; what differs is the identity assurance and whether a statutory signature requirement is met.
Use-case map
| Sector | Document | Method | Stamping | Consent / data step |
|---|---|---|---|---|
| Lending (bank/NBFC) | Loan agreement, sanction letter | Aadhaar eSign (biometric or OTP per policy) or DSC | Yes, state rate; e-stamp before signing | Aadhaar authentication consent; DPDP consent for processing |
| Lending | Demand promissory note in favour of the lender | Aadhaar eSign or DSC (carved out of First Schedule in 2022) | Yes | As above |
| Lending | Key Fact Statement acknowledgement | Platform signature or OTP eSign | No | Separate from loan agreement signature |
| Insurance | Proposal form, policy acceptance | OTP eSign or platform signature with OTP | Generally no | DPDP consent; sector rules on proposal forms |
| HR | Offer letter, appointment letter | Platform signature or OTP eSign | State-dependent | Employee data processing: DPDP s. 7(i) legitimate use for employment purposes, but notice still advisable |
| HR | Employment contract with confidentiality and IP terms | Aadhaar eSign or DSC | State-dependent | As above |
| HR | Policy acknowledgements | Platform signature | No | - |
| Procurement | Vendor MSA, SOW | Aadhaar eSign or DSC for the company signatory; counterparty may use DSC | Yes | Processor terms if personal data involved |
| Procurement | Purchase order acceptance | Platform signature | Usually no | - |
| Sales | Customer agreement, SaaS terms | Aadhaar eSign/DSC for enterprise; clickwrap for self-serve | Enterprise: yes; clickwrap: generally no | Separate data consent (DPDP s. 6(1)) |
| Real estate | Lease over one year, agreement to sell | Aadhaar eSign or DSC; then registration | Yes | - |
| Real estate | Leave and licence (Maharashtra) | Aadhaar eSign or DSC; registration mandatory | Yes | - |
| Any | Power of attorney between private parties, trust deed, will | Not e-signable (First Schedule) | - | - |
Three rules behind the map
- Match assurance to consequence. If the document will be stamped, registered, enforced against an individual or inspected by a regulator, use a section 5 method (DSC or Aadhaar eSign). If it is a routine consent with low value, a platform signature with a good audit trail is proportionate.
- Stamp first. For any chargeable instrument, section 17 of the Indian Stamp Act, 1899 requires stamping before or at execution. The signature method does not change the duty.
- Keep consents separate. A contract signature, an Aadhaar authentication consent and a DPDP consent to data processing are three different acts. Section 6(1) of the DPDP Act, 2023 requires consent to be "specific" and given "with a clear affirmative action"; bundling it with the signature defeats both.
Regulated lenders: one extra layer
The RBI's Digital Lending Directions require lenders to provide a Key Fact Statement and the loan documents to the borrower through the digital channel, and the 2025 outsourcing Directions require lenders' arrangements with lending service providers and technology vendors to meet the agreement-content rules in paragraphs 34 and 69 (audit rights, incident reporting, data storage in India where applicable, exit). The signature method is only part of the compliance picture; the platform itself is an outsourcing arrangement. ****
Completion-rate tips
- Offer OTP eSign as the default and biometric or DSC as the escalation for higher tiers; completion drops sharply when every signer must hold a token.
- Allow a non-Aadhaar fallback (DSC or platform signature) for foreign signers and record which method was used.
- Send the e-stamp certificate as the first page so signers see the document is complete.
- Set reminders at 24 and 72 hours; most unsigned documents are forgotten, not refused.
Where Legatio fits. Legatio lets each template specify the permitted signature methods, the stamping step and the consent screens, then tracks dispatch and completion per signer. Which method a given document needs is a judgement the map above helps you make.
Position stated as of October 2026. General information; sector rules for lenders and insurers should be confirmed against the current RBI and IRDAI directions.