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Jul

What is a Title Loan?

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California Title Loan Business Startup

Start a Title Loan Biz

A title loan is a short-term loan on your car or truck. Some lenders will make a loan on a motorcycle, boat or RV as well. To qualify for a loan, you must have the title to the vehicle in your name. If title is held in both you and your spouse’s name, both of you must apply for the car title loan.

Generally, the title to your vehicle must be “clear.” That is, you cannot owe another lien holder money against the title. Some lenders will make a car title loan if the amount owed a previous lien holder is less than 25% of the “low book” value of the vehicle. You can estimate the low book value of your vehicle here: NADA.

A “free and clear car title” means that you and/or a co-owner (spouse) own your vehicle, with no unsettled loans or judgments against it. This is a requirement to be eligible for a title loan by the majority of title loan lenders; often called “pink slip loans.”

If you do own your car, a title loan is a fast and easy way to get the money you need. All you need to bring into the title loan store is a “clear title,” valid government issued ID, and proof of income. Bring payroll stub, bank account statements, utility bill…

We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $277.95
  • We’ll print and ship it to you: $397.95


You get cash and your car serves as collateral for the loan.

Car title loan lenders rarely use your credit ratings when determining your qualification for a title loan or the loan amount.

The following items are required to start the title loan approval process:

  • Clear Car Title to Your Vehicle
  • Your Vehicle (for inspection only) A few lenders still require a set of keys.
  • A Government-Issued ID
  • Proof of Income
  • Proof of Residence

The title loan process typically takes about 30 minutes. Many title lenders provide the loan proceeds in cash. Others will give the borrower a check or a debit card. Some title lenders ACH the loan proceeds into the borrower’s checking account. A lot of this depends on whether you’re an Internet car title loan lender or a “brick-n-mortar” store front lender.

The lender’s ability to refinance a title loan is subject to state laws, but it is available where applicable. Refer to our “How to Start a Title Loan Business Manual” for your state’s laws. Certain restrictions may apply. If applicable, you may refinance a loan by paying the interest and fees. Your new loan will then pay off the previous loan, which will then be due on your next pay date.
We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”

  • Immediate download in Adobe Acrobat: $277.95
  • We’ll print and ship it to you: $397.95


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