The Loan Agreement With Car As Collateral is a fundamental document used in Malaysian secured lending transactions where a vehicle serves as security for a loan. This agreement is commonly used by financial institutions, licensed moneylenders, and other credit providers in Malaysia when extending credit to individuals or businesses who offer their vehicles as collateral. The document ensures compliance with Malaysian financial regulations and vehicle security requirements while protecting both lender and borrower interests. It contains essential provisions for creating and enforcing the security interest, maintaining the collateral, and handling default scenarios. This type of agreement is particularly relevant in the Malaysian market where vehicle financing is a significant component of consumer and business lending, and must comply with specific local requirements for vehicle-secured transactions.

1. Parties: Identifies and defines the Lender and Borrower with complete details including registration/ID numbers

2. Background: Explains the context of the loan and that the Borrower owns the vehicle being offered as collateral

3. Definitions and Interpretation: Defines key terms used throughout the agreement including 'Vehicle', 'Security Interest', 'Event of Default', etc.

4. Loan Amount and Purpose: Specifies the principal amount, purpose of the loan, and disbursement terms

5. Interest and Repayment: Details the interest rate, repayment schedule, and payment methods

6. Security Interest: Describes the vehicle being used as collateral and creates the security interest

7. Borrower's Representations and Warranties: Borrower's confirmations regarding vehicle ownership, condition, and authority to enter agreement

8. Vehicle Maintenance and Insurance: Requirements for maintaining and insuring the vehicle during the loan period

9. Events of Default: Lists circumstances constituting default and consequences

10. Enforcement Rights: Lender's rights and remedies upon default, including vehicle repossession

11. Notices: How formal communications between parties should be made

12. Governing Law and Jurisdiction: Confirms Malaysian law governs and specifies courts having jurisdiction