Title loans are not offered in all states. A few states have made them illegal because they are viewed as a welfare-reducing provision of credit, or predatory lending. This leaves banks a pad to make profit if at any time they have to repossess the vehicle and move it at sale, in the occasion the borrower defaults. The sum a borrower can be loaned is reliant on the worth of their vehicle. Other states, similar to Montana, have started setting strict regulations on title loans by not enabling the APR to reach above 36%, down from the past 400%. Be that as it may, Montana has as of late casted a ballot against permitting title loans in the state. A moneylender will ordinarily look into the closeout estimation of the car being used as security and offer a loan that is somewhere in the range of 30% and half of the worth of the vehicle.