Title papers signify that you are the true owner of the car you want to get repaired. This indicates that there is no foul play in question. Sometimes, people try to get money for stolen cars, or cars of their relatives who are themselves not eligible for the program assistance. This is stopped through the mandatory title paper requirements in almost all organizations.
Therefore, not having title papers may cause a hindrance to getting any required assistance. If your papers are misplaced or stolen, file a complaint with the local police station and then proceed with the application by informing them about the same.