Loan Vehicle Sale Agreement Template for India

The Loan Vehicle Sale Agreement is a specialized legal document used in India when a vehicle purchase is financed through a lending institution. This agreement is essential in transactions where the buyer requires financing to purchase a vehicle, whether for personal or commercial use. It combines elements of a traditional vehicle sale agreement with loan documentation, ensuring compliance with the Indian Contract Act, Motor Vehicles Act, and RBI guidelines. The document typically includes detailed vehicle specifications, loan terms, repayment schedules, security provisions, and ownership transfer conditions. It's particularly useful in protecting the interests of all three primary parties - the seller, buyer, and financing institution - by clearly defining their rights, obligations, and remedies under a single comprehensive agreement. The document is structured to facilitate proper registration and transfer of the vehicle while maintaining the financer's security interest until full loan repayment.

1. Parties: Identification of all parties: Seller, Buyer, and Financing Institution

2. Background: Context of the transaction, including the seller's ownership of the vehicle and buyer's desire to purchase with financing

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core terms of the vehicle sale including price and transfer of ownership

5. Loan Terms: Details of the loan including principal amount, interest rate, and tenure

6. Repayment Terms: Payment schedule, installment amounts, and payment methods

7. Vehicle Details and Condition: Comprehensive description of the vehicle and its current condition

8. Representations and Warranties: Statements and guarantees by all parties regarding their capacity and the vehicle's condition

9. Security Provisions: Details of security interest in the vehicle and registration requirements

10. Insurance Requirements: Mandatory insurance coverage and related obligations

11. Default and Remedies: Consequences of default and available remedies

12. Transfer of Title: Process and conditions for transfer of vehicle ownership

13. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

14. Notices: Method and addresses for serving notices

15. Execution: Signature blocks and execution formalities