Can a Vehicle License Be Used as Collateral for a Loan?

1 Answers
ChristianRose
07/30/25 9:53am
A vehicle license cannot be used to secure a loan from a bank, as it is not recognized by banks as acceptable collateral for loans. It can only serve as part of personal identification. Below are the details about unsecured loans: Applying for an unsecured loan: If a borrower urgently needs funds but lacks bank-approved collateral, they can apply for an unsecured loan, in addition to seeking loans from online lending platforms that accept vehicle licenses as collateral. Channels for unsecured loans: Currently, there are many channels for applying for unsecured loans in China, including banks, loan companies, and online lending service platforms. Restrictions on unsecured loans: Banks impose numerous restrictions on unsecured loans, primarily conducting strict assessments of the borrower's personal credit history, making successful applications relatively difficult. Meanwhile, unsecured loans from loan companies often come with very high interest rates, which are generally hard for average borrowers to afford. Therefore, applying for an unsecured loan through an online lending service platform is a very good option.
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