what banks converts auto loans to signature loan or unsecured loans due to the bank not receiving the car title?

Not sure I understand your question but here is how it works for a car loan...when a bank writes a loan on a car, they get the title until the loan is paid off. If they never get the title, you are in default of the loan. This could lead to demand for immediate payment of what is owed, or repossession of the car, maybe both....maybe more. In my time as a car dealer, I have never seen a bank that didn't care that they didn't get the title and simply wrote out the loan into a personal, unsecured loan. The whole point of a car loan is that the bank has some sort of collateral and they maybe wouldn't have written a personal unsecured loan for that same amount.

OK thanks...

Unsecured loans always have significantly higher interest rates because they lack any collateral that secured loans would have. Which is a result of the higher risk the lending institution is taking.

They can be three times higher or more. Which is a significant amount.