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Title loan - Wikipedia, the free encyclopedia A car title loan, or simply title loan, is a loan where the borrower provides their car as collateral. If the borrower defaults, then the lender may take possession of the car. This makes the loan less risky for the lender, and may permit the borrower to obtain a lower interest rate than they could get on an unsecured loan.
Car Title Loans Overview - Center for Responsible Lending Driving Borrowers to Financial Ruin. Like payday loans, car title loans are marketed as small emergency loans, but in reality these loans trap borrowers in a cycle of debt.
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Car Title Loan Reform Governor Tom Vilsack called for car title loan reforms which would drastically cut the 264% interest rate for loans secured by the borrower's car.