Can a Vehicle License Be Used for Mortgage Loans?
2 Answers
Vehicle licenses cannot be used for mortgage loans. Relevant details about the vehicle license are as follows: Introduction: The motor vehicle license is the legal document permitting a motor vehicle to drive on roads within China. The "Motor Vehicle License" is an important document recognized by Chinese laws and regulations, playing a significant role. Motor vehicle drivers must pay high attention to it to protect their legal rights from being infringed. Recorded Information: The "Motor Vehicle License" in the driver's possession contains detailed and important information, including the license plate number, owner's name, vehicle model and type, engine number and chassis number, load capacity or passenger capacity, initial registration date, and annual inspection records. The "Motor Vehicle License" has the characteristic of uniqueness, meaning that for a specific motor vehicle, there is only one set of engine number and chassis number, and only one license plate number.
I see many people asking if a vehicle license can be used for collateral loans, which is actually a common misconception. The vehicle license primarily serves as proof that the car is legally allowed on the road, much like how a driver's license proves you can drive, but it cannot directly serve as loan collateral. When you want to use your car for a loan, banks or formal institutions will require the vehicle registration certificate—often called the 'big green book'—which is the key document proving vehicle ownership. The vehicle license plays a supporting role in the mortgage process, such as verifying vehicle details. The full procedure requires submitting the registration certificate, a copy of the vehicle license, insurance documents, and personal identification. The institution will then register the mortgage after review. If you only have the vehicle license, most major institutions won’t accept it due to the high risk—what if someone misuses it or the car isn’t actually theirs? I also know some people have tried small loan companies or online platforms that claim to approve loans with just the vehicle license, but in reality, they still require the green book or other assets. So, if you really need a loan, gather all the necessary documents first—don’t waste time relying on a single document to avoid scams or delays. Always consult reliable sources beforehand to protect your rights and interests.
