[.green-span]RFP Template for Loan Origination and Decisioning Software[.green-span]
A strong RFP template for loan origination and decisioning software covers thirteen core sections:
- Background and objectives
- Scope of work
- Functional requirements
- Credit decisioning and risk requirements
- Data and integration requirements
- Compliance and third-party risk management
- Technical and security requirements
- Reporting and analytics requirements
- Implementation and support
- Vendor qualifications
- Pricing format
- Evaluation criteria and weighted scoring
- Submission instructions and terms
Most published examples stop at a feature checklist, which leaves decisioning requirements vague and gives evaluators no consistent way to compare proposals. This guide explains what each section should accomplish, how decisioning differs from origination workflow, and how to score vendors with a weighted matrix. It closes with a fill-in-ready template that procurement, IT, and lending operations teams at banks, credit unions, fintechs, and SMB lenders can adapt.
Know What Your RFP Needs to Accomplish
A request for proposal (RFP) for loan origination and decisioning software asks vendors how they would meet your requirements, at what cost, and how quickly. It turns internal goals into written, scorable requirements so every vendor answers the same questions in the same format.
A loan origination system (LOS) manages the application journey, covering intake, document collection, workflow, e-signature, and status tracking. Decisioning software applies credit policy to that application through bureau data, rules, models, and fraud checks to produce an approve, decline, or refer outcome. Many lenders buy both together, so the RFP must spell out requirements for each layer.
Choose the Right Document: RFI, RFP, or RFQ
Each procurement document answers a different question, and using the wrong one slows the process. The table below shows when each one fits.
Most lenders run an RFI to build a long list, then issue an RFP to a shortlist of three to six vendors. An RFQ fits best for renewals or add-on modules where the scope is already settled.
Give Decisioning Its Own Requirements
Decisioning is where credit policy and compliance exposure meet, so it deserves its own section in the RFP. When decisioning sits inside general requirements, vendors can answer "yes" to "supports automated decisions" without explaining how rules, models, and data work together.
A dedicated decisioning section should ask how the platform connects to credit bureaus and how fraud signals enter the flow. It should confirm that credit teams can configure rules and models without engineering tickets.
Finally, it should ask how each decision is explained and logged, including adverse action reason codes. Those answers separate a configurable decision engine from a static scorecard.
Map Where Lendflow Fits in the Evaluation
Lendflow builds open architecture digital lending, so its products can fill specific layers of your RFP or plug into an LOS you already run. Lenders evaluating Lendflow typically map its three products to the decisioning, data, and automation sections of the template.
Lendflow Intelligence is the decisioning layer, with configurable decision models and ready-made connectors for popular CRM and banking systems. Teams can configure and launch it in roughly 2 to 4 weeks. It delivers 85% faster time-to-decision, 35% operational cost savings, and a 60% application conversion lift.
Lendflow Connect addresses the data and integration section through Data Orchestration. Lenders can connect with integration partners in minutes and build decline waterfalls so no qualified deal leaves the funnel. Connect is SOC 2 Type II compliant, with widgets launching in under two weeks and a full API in 30 to 45 days.
Lendflow Automate covers document and workflow automation with specialized AI agents. Agents include Doc Analyzer for data extraction, Industry Map for NAICS and SIC classification, Trust Score for explainable risk scoring, and Voice AI for follow-ups. Automate drives 80% faster document review and 65% faster time-to-decision.
Use This Loan Origination RFP Template Section by Section
Copy the sections below into your RFP document and replace bracketed text with your own details. Each requirement includes an ID so vendors can respond line by line and evaluators can score consistently.
Ask vendors to answer each requirement with one code: Yes (available today), Configurable (no custom code), Roadmap (with a target date), or No. Require a short explanation for every answer other than "No."
1. Background and Objectives
This section tells vendors who you are and what success looks like, which helps them propose a realistic solution.
[Institution Name] is a [bank / credit union / fintech lender / SMB lender] headquartered in [City, State] with [number] branches or channels. We originate [loan products, such as term loans, lines of credit, equipment financing, SBA loans] for [consumer / small business / commercial] borrowers. Our current origination process relies on [current systems and manual steps].
Through this RFP, [Institution Name] seeks a loan origination and decisioning solution that will:
- Reduce application-to-decision time from [current state] to [target state].
- Embed compliance checks directly into the origination workflow.
- Let borrowers apply remotely, upload documents, track status, and e-sign.
- Allow credit teams to update decision rules without vendor change requests.
- Support growth to [target annual application volume] without proportional headcount growth.
2. Scope of Work
A clear scope keeps vendors from proposing more, or less, than you need.
In scope: [Loan products], [borrower segments], [channels such as web, mobile, branch, broker, embedded partner], and [number] internal user roles.
Out of scope: [Loan servicing, collections, core banking replacement, or other excluded areas].
Expected users: [Number] internal users across [credit, underwriting, operations, compliance, sales], plus [estimated annual applications] borrower applications.
3. Functional Requirements
These requirements cover the origination workflow from first touch to closing.
4. Credit Decisioning and Risk Requirements
This section tests whether the vendor can apply your credit policy consistently, transparently, and at speed.
Ask vendors to describe the decision flow for a sample application, including every data call, rule, and model in sequence.
5. Data and Integration Requirements
Integration effort often decides the real cost and timeline, so require specifics here.
Ask vendors to list each integration they already support in production and the typical time to activate it.
6. Compliance and Third-Party Risk Management
This section collects the evidence your compliance and vendor management teams need before approving any contract.
The Interagency Guidance on Third-Party Relationships: Risk Management, issued June 6, 2023 by the Federal Reserve, FDIC, and OCC, outlines a risk management lifecycle. Its stages are planning, due diligence and third-party selection, contract negotiation, ongoing monitoring, and termination.
Per the FDIC's announcement, due diligence "should be commensurate with the level of risk and complexity of the third-party relationship." The guidance also says third parties engaged in lending activities should be evaluated under both third-party risk guidance and the institution's lending risk processes. Credit unions and fintech lenders can use the same lifecycle as a practical structure for vendor review.
7. Technical and Security Requirements
These requirements help IT and information security confirm the platform can run safely at your volume.
8. Reporting and Analytics Requirements
Reporting requirements show whether leaders will get pipeline and performance visibility without manual spreadsheets.
9. Implementation and Support
This section asks vendors to commit to a realistic plan and support model.
The vendor shall provide:
- A phased implementation plan with milestones, dependencies, and estimated go-live date.
- The roles and staffing it will assign, and the roles it expects from [Institution Name].
- Its approach to data migration, testing, and user training.
- Support hours, channels, response-time commitments, and escalation paths.
- Its release schedule and how it communicates product changes.
10. Vendor Qualifications
Qualification questions confirm the vendor can support your program over the life of the contract.
The vendor shall provide:
- Company overview, ownership, and years in operation.
- Experience with [bank / credit union / fintech / SMB lending] clients of similar size.
- At least [three] client references with comparable products and volumes.
- A product roadmap for the next [12 to 24] months.
- Any pending litigation or regulatory actions relevant to this engagement.
11. Pricing Format
A required pricing format lets you compare proposals directly instead of reconciling different models.
Vendors shall submit pricing using the following structure, with all assumptions stated:
- One-time implementation and configuration fees.
- Recurring license or subscription fees, with the pricing basis (per user, per application, per loan, or platform fee).
- Third-party data and integration fees, itemized by provider.
- Professional services rates for work beyond the proposed scope.
- Projected total cost of ownership over [three / five] years at [current] and [projected] application volumes.
12. Evaluation Criteria and Weighted Scoring
A weighted scoring matrix keeps the evaluation objective and gives each stakeholder group a defined say. Adjust the weights to your priorities, keep the total at 100, and have each evaluator score independently before the group meets.
Define each score before scoring begins so evaluators apply the same standard. For example, 5 means fully met today, 3 means partly met or configurable, and 1 means not met.
13. Submission Instructions and Terms
Clear terms reduce follow-up questions and protect your institution during the process.
- Submit questions to [contact name, email] by [date]. Answers will be shared with all vendors by [date].
- Submit proposals in [PDF and spreadsheet] format to [email or portal] by [time, time zone, date].
- Proposals must be signed by an authorized signatory of the vendor.
- Proposals must remain valid for [180] days from the submission deadline.
- Vendors must sign the attached non-disclosure agreement before receiving detailed requirements.
- [Institution Name] reserves the right to accept or reject any proposal, in whole or in part, and to cancel this RFP at any time.
- Shortlisted vendors will be invited to scripted demonstrations between [dates].
Avoid the Pitfalls That Stall Vendor Selection
A good template only works when the process around it is disciplined. These practices help teams reach a confident decision faster.
Bring Every Stakeholder In Before You Write
Involve procurement, IT, information security, credit, operations, and compliance before drafting requirements. Late input from any of these groups usually forces a second round of vendor questions and delays the timeline.
Prioritize Requirements Honestly
Labeling every requirement "Must" makes it impossible to tell vendors apart. Reserve "Must" for true deal-breakers, and use "Should" and "Could" for features that add value but would not stop a purchase.
Script the Demos
Give shortlisted vendors the same two or three sample applications and ask them to run each one live. Scripted demos expose how decisioning, document handling, and exceptions actually work, which polished sales presentations often skip.
Ask for Evidence Behind Every Claim
When a vendor cites faster decisions or lower costs, ask how it measured the result and request a reference who can confirm it. Proof from comparable lenders is worth more than a long feature list.
Plan for the Full Relationship
Plan for monitoring and exit on day one, following the third-party risk lifecycle. Ask how performance will be reported after go-live and how your data will be returned if the relationship ends.
Turn Requirements Into a Confident Decision
A well-built RFP template for loan origination and decisioning software gives vendors a clear brief and gives your team a fair way to compare them. The most useful templates separate origination workflow from credit decisioning and tie compliance questions to the June 2023 interagency third-party risk guidance. A weighted scoring matrix agreed on before proposals arrive keeps the final choice grounded in your priorities.
Start with the template above and adjust the priorities and weights to fit your lending program. Then use scripted demos and references to confirm what each vendor puts on paper.
Frequently Asked Questions
What Sections Should a Loan Origination RFP Include?
A complete loan origination RFP includes background and objectives, scope, functional requirements, credit decisioning and risk, data and integrations, and compliance with third-party risk management. It also covers technical and security requirements, reporting, implementation and support, vendor qualifications, pricing format, evaluation criteria, and submission terms.
How Should We Score LOS and Decisioning Proposals?
Use a weighted scoring matrix with criteria and weights agreed on before proposals arrive. Have each evaluator score independently on a defined 1 to 5 scale, then combine the scores and use demos and references to resolve close results.
What Is the Difference Between an LOS and an LMS?
A loan origination system (LOS) manages the process from application through decision and closing. A loan management system (LMS) handles the loan after funding, including servicing, payments, and account management, so most lenders scope the two separately.
How Much Does Loan Origination Software Cost?
Costs vary widely by loan products, application volume, integrations, and pricing model. To compare vendors reliably, require a standard pricing format covering implementation, recurring fees, data fees, and multi-year total cost of ownership.
What Are the Main Stages of Loan Origination?
Loan origination generally moves through application, document collection and verification, underwriting and credit decisioning, approval and offer, closing and e-signature, and funding. Your RFP should confirm how each vendor supports every stage and the handoffs between them.
