The name is self-explanatory, with the fact that they offer loan approval with no faxes needed. Of course, we are talking about loans offered by online lenders, since traditional lenders, like banks and credit unions, usually require detailed information to be handed over the counter.
But speed is of the essence when dealing with cash loans, especially online. And thanks to the development of near to immediate electronic access to information, lenders no longer really needs faxes to assess the suitability of a loan applicant. So, fax free personal loans have become a common option when a small cash loan needs to be accessed fast.
Key Information Required
When applying for any loan, there is some key information that is typically required, regardless of whether it is for a faxless loan or not. Firstly, the applicant has to prove that they are over the age of 18. So, providing identification such as a drivers license, a birth certificate or other government issued documentation is necessary.
Secondly, the applicants need to show that they are employed and receiving an income large enough to cover the repayment of the loan. For loan approval with no faxes, the actual pay slip may not be necessary - a social security number may do.
The third key piece of information is proof that the applicant has an active bank account. To get a fax free personal loan this is essential, since money will be paid into the account directly, and repayments are withdrawn from the account too.
How Fax Free Loans Work
As already mentioned, the real advantage of getting a faxless loan is the speed with which approval can be secured. In most cases, the loan fund can be deposited electronically into the bank account of the borrower as quickly as one hour after the application is approved.
This is possible for two reasons. Firstly, the whole process is done over the internet and, as we all know, the internet is all about speed. All of the relevant information required to get loan approval with no faxes is sent in an electronic application form. While paper forms need to be read by staff members, electronic info can be confirmed almost immediately.
Secondly, there is no need to wait for faxed information. Previously, online lenders needed things like photo IDs and photocopied documents to be faxed so it could be attached to an application file. But now, anything can be received and stored without needing a paper printout. So, approval on a fax free personal loan is much faster.
Loan Terms and Conditions
Of course, there is no such thing as a free lunch, so faxless loans have conditions that must be taken into account. These loans are not large, usually ranging from $100 to $1,500. The convenience of loan approval with no faxes is balanced by the general expectation that it will paid in full within 30 days - sometimes as short as two weeks.
What this means is that the borrower needs to repay using the next pay check, so it is important that an applicant knows they can spare that cash before applying for a fax free personal loan.