A car loan contract is a legal contract which is signed by the borrower and the lender of the car loan. This contract mentions all the terms and conditions of the car loan which is agreed by both the parties.
Sample Car Loan Contract:
Loan Contract Number: 123/ J890
This contract is prepared on October 23rd, 2010 by and between The City Bank Canada, hereinafter called as the lender AND Ms. Lena Simpson, hereinafter referred as the borrower.
Whereas the borrower is interested to take fixed amount as a car loan and the lender has approved the amount.
Hence, this loan contract is commencing on October 28th, 2010 and is terminating on October 28th, 2012.
Following are the fixed term & conditions of the contract:
(a) Car Loan clause:
The borrower is willing to take the loan of $ 45670 to buy a brand new car as per given specifications:
Brand: Ford Fiesta
Car Model: 2010 (new)
Dealer: Marcos Auto Dealers Pvt. Ltd
The borrower has completed with all the formality documents, which will be submitted to the concerned department for loan verification.
(b) Borrower Obligation:
The borrower is agreed to pay the instalment of $ 4567 to the lender on decided date of 7th of each month. Any delay will be charged with $100. The rate of interest is 5% as per market fluctuations.
(c) Lender Obligations:
The lender will inform the increase in rate of interest to the borrower. After every instalment, the lender will issue a receipt to the borrower.
The contract can be terminated in case of any monetary issue encountered.
Hereinafter, both the parties will accept this contract as given in the following section:
Signature of the Lender:
Signature of the borrower: