PURPOSE: A loan system for trading used vehicles and method thereof are provided to enable a user to receive a loan service by interlocking with an insurance company. CONSTITUTION: A loan management server(111) receives insurance documents based on loan application information from an insurance company server(102). An escrow management unit(113) requests for creating an escrow account to an escrow server(104) based on the insurance document. The escrow management unit remits funds to the escrow account corresponding to the loan application information. An insurance management unit(115) establishes insurance for assuring the movement of the used vehicle.