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What is a Delaware Title Loan?

A Delaware title loan is a loan in the state of Delaware for which an asset of the borrower is put up as collateral to secure the loan in case he or she is unable to pay it back. Most often it is the borrower’s car that is used to secure the loan. So if the borrower cannot pay back the loan in a certain period of time after the maturity date (such periods vary by state), the lending company will repossess the car, sell it, and use the money to pay off the loan. Each state has its own set of rules regarding title loans. In Delaware, for example, there is no cap on interest rates, meaning lenders can charge whatever they want for interest (on average borrowers are charged 25% per month).

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Rates (%)

The state of Delaware places no limit on what a title loan company can charge as interest. The average title loan in Delaware has a monthly interest of 25%, which is equivalent to an APR of 300%.

Credit Requirements

All that is required to obtain a Delaware title loan is a lien-free car and a government-issued I.D.; that is, lending companies do not need to check the applicant’s credit.


Delaware legislature in regards to title loans states that: 5 DE Code § 2254 (2017) – lenders may not allow a title loan rollover that would extend the payment period more than 180 days. Universal Citation: 5 DE Code § 2255 (a) (2017) – if the borrower fails to repay the loan, a lender may not take possession of the automobile the lender offers a workout agreement, while the borrower has 10 days to accept. Workout agreements require a minimum of 10% of the outstanding balance each month.

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