Sample Loan Agreement with Car as Collateral

This Loan Agreement ("Agreement") is made and entered into on this [Date] by and between:

Lender: [Lender’s Name], having its principal place of business at [Lender’s Address] ("Lender").

Borrower: [Borrower’s Name], residing at [Borrower’s Address] ("Borrower").

1. Loan Amount and Terms 1.1 Loan Amount: The Lender agrees to loan the Borrower the sum of [Loan Amount in Words] dollars ($[Loan Amount in Figures]). 1.2 Interest Rate: The loan shall bear interest at the rate of [Interest Rate]% per annum, calculated on the basis of a 360-day year. 1.3 Repayment Schedule: The Borrower agrees to repay the loan in [Number of Payments] equal monthly installments of [Installment Amount] each, commencing on [Start Date] and ending on [End Date]. 1.4 Late Payment: If any installment is not paid on or before its due date, a late fee of [Late Fee Amount] will be assessed.

2. Collateral 2.1 Description of Collateral: The Borrower agrees to pledge the following vehicle as collateral for the loan:

• Make: [Car Make]
• Model: [Car Model]
• Year: [Car Year]
• VIN: [Vehicle Identification Number]
• License Plate Number: [License Plate Number]

2.2 Ownership: The Borrower confirms that they are the sole owner of the vehicle and have the right to pledge it as collateral.

2.3 Maintenance and Insurance: The Borrower agrees to maintain the vehicle in good condition and carry insurance sufficient to cover the value of the vehicle. Proof of insurance must be provided to the Lender upon request.

3. Default 3.1 Event of Default: An event of default occurs if the Borrower fails to make any payment when due, breaches any term of this Agreement, or becomes insolvent. 3.2 Consequences of Default: In the event of default, the Lender has the right to take possession of the collateral and sell it to recover the outstanding loan amount. Any proceeds from the sale, after deducting reasonable expenses, will be applied towards the loan balance.

4. Representations and Warranties 4.1 Borrower’s Representations: The Borrower represents that all information provided to the Lender is accurate and complete, and that the vehicle is free of any liens or encumbrances.

4.2 Lender’s Representations: The Lender represents that they have the authority to enter into this Agreement and that the loan funds will be provided as specified.

5. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles.

6. Miscellaneous 6.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings. 6.2 Amendments: Any amendments or modifications to this Agreement must be in writing and signed by both parties. 6.3 Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect. 6.4 Notices: All notices under this Agreement must be in writing and delivered to the addresses stated above.

IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of the day and year first above written.

Lender:
Signature: ___________________________
Name: [Lender’s Name]
Title: [Lender’s Title]

Borrower:
Signature: ___________________________
Name: [Borrower’s Name]