Terms and Conditions

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Terms and Conditions

1. Loan Agreement

  • By applying for and accepting a car loan, the borrower agrees to comply with the terms set forth by the lender.

 

2. Loan Amount and Disbursement

  • The loan amount will be determined based on the borrower’s eligibility, creditworthiness, and the value of the vehicle.
  • Funds will be disbursed directly to the car dealer or seller, unless otherwise agreed.

 

3. Interest Rate

  • The loan may have either a fixed or variable interest rate.
  • The interest rate will be stated in the loan agreement and may be subject to change in variable-rate loans.

 

4. Repayment Terms

  • The borrower must repay the loan in equal monthly installments (EMIs) as per the agreed schedule.
  • Late payments may attract penalties and additional interest charges.
  • Prepayment of the loan may be allowed, subject to prepayment fees (if applicable).

 

5. Loan Tenure

  • The tenure of the loan will be specified in the agreement, typically ranging from 12 to 84 months.

 

6. Collateral and Security

  • The vehicle being financed serves as collateral for the loan.
  • The lender retains ownership rights until the loan is fully repaid.

 

7. Insurance Requirement

  • The borrower must maintain comprehensive insurance coverage on the vehicle throughout the loan period.
  • Failure to insure the vehicle may result in penalties or loan default.

 

8. Default and Consequences

  • A borrower is in default if they fail to make payments for a specified period.
  • Upon default, the lender has the right to:
    • Charge penalties and additional interest.
    • Report the default to credit bureaus, affecting the borrower’s credit score.
    • Repossess the vehicle if the loan remains unpaid after the grace period.

 

9. Processing Fees and Charges

  • The lender may charge a processing fee, late payment fee, and documentation charges.
  • Any applicable taxes and government levies must be borne by the borrower.

 

10. Loan Closure & Ownership Transfer

  • Upon full repayment, the lender will issue a No Objection Certificate (NOC) to transfer vehicle ownership to the borrower.

 

11. Governing Law

  • This loan agreement shall be governed by the applicable laws of the country/state in which it is issued.

 

12. Amendment of Terms

  • The lender reserves the right to amend the terms and conditions with prior notice to the borrower.