A document made between BORROWER and BANK with respect to the loan of the vehicle is known as a vehicle loan contract. This is a legal document that consists of the terms and conditions based on which both the parties sign the contract.
Sample Vehicle Loan Contract
The effective date of vehicle loan contract: 20’Th Jan, 2011
This contract is made between two parties which are known as the BORROWER and the BANK.
Details of the BORROWER
Name: Mr. Ralph Philips
Address: 34-P, Mainline road, CA
Details of the BANK
Name: Mr. David Craig (National Bank, CA)
Official branch Address: RE-9, ridge road, CA
Loan amount: $2000
Vehicle identification code: 345#H
Vehicle to be bought: Fiat R500 second hand
The amount shall be paid back in equal monthly instalments of $250 each.
The amount shall be paid on the 1’St of each month.
The following are the terms and conditions which have to be followed by both the parties
- The BORROWER agrees to loan an amount of $2000 from the BANK so that he can buy the vehicle with the details which are mentioned above.
- The BANK agrees to loan the amount to the BORROWER after going through the vehicle papers and on the condition that the amount shall be paid back in equal monthly instalments.
- The BANK has the right to demand compensation charges in case of late payment.
- The BANK holds the authority to check and inspect the vehicle in question till the time the whole payment is received.
Ralph Philips David Craig