Car Loan Contract Template for Philippines

The Car Loan Contract is a crucial legal document used in the Philippines when financing the purchase of motor vehicles. It serves as the primary agreement between a financial institution and a borrower, establishing the terms under which the loan is granted and the vehicle is used as security. This document is essential when a purchaser requires financing for a vehicle acquisition and must comply with various Philippine regulations, including the Truth in Lending Act, Consumer Act, and BSP guidelines. The contract includes comprehensive details about the loan terms, vehicle specifications, payment schedules, insurance requirements, and security arrangements. It's designed to protect both the lender's security interest and the borrower's rights while ensuring transparency in the lending process as required by Philippine banking and consumer protection laws.

1. Parties: Identification of the lender (financing company) and borrower with complete details including names, addresses, and contact information

2. Background: Brief context of the loan agreement, stating the borrower's intention to purchase a vehicle and the lender's agreement to provide financing

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Loan Amount', 'Interest Rate', 'Term', 'Monthly Payment', etc.

4. Loan Details: Specific details of the loan including principal amount, interest rate, term, and total amount payable in compliance with Truth in Lending Act

5. Vehicle Information: Complete description of the vehicle including make, model, year, color, engine number, chassis number, and registration details

6. Payment Terms: Schedule of payments, payment methods, due dates, and consequences of late or missed payments

7. Security Interest: Creation of security interest in the vehicle, including chattel mortgage provisions

8. Insurance Requirements: Mandatory insurance coverage requirements for the vehicle

9. Borrower's Representations: Warranties and representations by the borrower regarding their capacity to enter into the agreement

10. Events of Default: Circumstances constituting default and the lender's remedies in such events

11. Vehicle Use and Maintenance: Borrower's obligations regarding vehicle maintenance and permitted use

12. Termination: Conditions for early termination and its consequences

13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution