Old-fashioned term for the raising of a loan against some form of semi-permanent security - the most common being for an individual to buy a car. Repayment of the loan is by a number of instalments with ownership of the security passing once payments are completed. Default early and the asset may be re-possessed.
This is how you try to buy your first car! You don't have any money - but you want to get mobile, now. So, approach a bank and ask for the funds - and the bank will need security. The loan is for a car - so what simpler than using the car as security for the bank against the loan?
This is Hire Purchase.