It is a type of secured loan where borrowers can use their asset title as collateral. Borrowers who get title loans must allow a lender to place a lien on their title, and temporarily surrender the hard copy of their title, in exchange for a loan amount. When the loan is repaid, the lien is removed and the title is returned to its owner. If the borrower defaults on their payments then the lender is liable to repossess the title and sell it to repay the borrowers’ outstanding debt.