NO, you don’t need a license to own a car. You need a drivers license to legally drive.
Loaning money to anyone (including) family is always a bad idea, thus usually does not end well.
So if you are stupid enough to loan money to your sister, do NOT put her name on the title at all. If you keep in your own name and (if) she does pay you, then (you) as the owner can take your car back, (till) she pays you for the loan.
So, (if) you loan the money to her, then get a auto policy in your name as the owner and have your sister listed as the driver, since she will be the one driving it. With the policy in your name, then she can pay (you) the premiums, thus make sure she keeps insurance on it.
Then (if) she actually pays you back the money, then at that time, you transfer the title into her name only, and be done with it.