Title Loan


DEFINITION of 'Title Loan'

A loan where an asset is required as collateral. These loans are popular for two reasons. The first being that with this type of loan, the applicant's credit rating is not considered. The second being that title loans can be approved very quickly and for loan amounts as little as $100 in most cases.


The lender will not usually require the actual physical retention of the collateral. Many simply require that they hold the proof of ownership of the asset. For example, in a car title loan, having a second set of keys, a tracking device or the ability to disable the ignition would suffice. However the borrower must hold clear title to the car, with no current financing or liens on the vehicle.

  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Lender

    Someone who makes funds available to another with the expectation ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. Secured Debt

    Debt backed or secured by collateral to reduce the risk associated ...
  5. Unsecured Loan

    A loan that is issued and supported only by the borrower's creditworthiness, ...
  6. Loan

    The act of giving money, property or other material goods to ...
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