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Motorcycle Loan Agreement for Indonesia

Motorcycle Loan Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for financing a motorcycle purchase. The document outlines the loan amount, repayment terms, interest rates, and security arrangements through fiduciary transfer, complying with Indonesian Financial Services Authority (OJK) regulations and consumer protection laws. It includes specific provisions for vehicle identification, insurance requirements, maintenance obligations, and default remedies, while ensuring adherence to Indonesian secured transaction regulations and civil code requirements.

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Motorcycle Loan Agreement

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What is a Motorcycle Loan Agreement?

The Motorcycle Loan Agreement is essential for financial institutions and financing companies operating in Indonesia's vehicle financing sector. This document is used when an individual seeks financing to purchase a motorcycle, establishing a secured lending arrangement where the motorcycle serves as collateral through a fiduciary transfer mechanism. The agreement must comply with Indonesian Financial Services Authority (OJK) regulations, particularly OJK Regulation No. 35/POJK.05/2018, Law No. 42 of 1999 on Fiduciary Security, and consumer protection laws. It includes comprehensive details about the loan terms, vehicle specifications, insurance requirements, borrower obligations, and enforcement rights, making it suitable for both commercial financing companies and banking institutions offering vehicle loans.

What sections should be included in a Motorcycle Loan Agreement?

1. Parties: Identification of the lender (financial institution) and borrower with complete legal names and addresses

2. Background: Context of the agreement, including the borrower's request for financing and lender's willingness to provide the loan

3. Definitions: Key terms used throughout the agreement, including technical and financial terms

4. Loan Details: Specific information about the loan amount, interest rate, term, and purpose

5. Vehicle Details: Complete description of the motorcycle including make, model, year, color, engine number, and chassis number

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

7. Security and Fiduciary Transfer: Details of the fiduciary security over the motorcycle, registration requirements, and borrower's obligations

8. Insurance Requirements: Mandatory insurance coverage for the motorcycle and terms related to insurance claims

9. Borrower's Representations: Borrower's warranties regarding their capacity to enter the agreement and information provided

10. Borrower's Obligations: Ongoing responsibilities including vehicle maintenance, usage restrictions, and reporting requirements

11. Events of Default: Circumstances constituting default and consequences thereof

12. Enforcement Rights: Lender's rights and remedies in case of default, including repossession procedures

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Notices: Process and addresses for formal communications between parties

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Motorcycle Loan Agreement?

1. Guarantor Provisions: Required when a third-party guarantor is involved in securing the loan

2. Early Repayment Terms: Include when early repayment options are offered, specifying any penalties or calculations

3. Electronic Communications: Include when parties agree to use electronic means for notices and payments

4. Force Majeure: Include when specific provisions for unforeseen circumstances affecting vehicle use or payment ability are needed

5. Assignment Rights: Include when either party may need to transfer their rights under the agreement

6. Anti-Money Laundering Compliance: Include for high-value loans or when required by institutional policy

What schedules should be included in a Motorcycle Loan Agreement?

1. Payment Schedule: Detailed breakdown of all payments including principal, interest, and due dates

2. Vehicle Specification: Complete technical specifications and photographs of the motorcycle

3. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

4. Delivery Receipt: Document confirming the delivery and acceptance of the motorcycle

5. Required Documents Checklist: List of all documents required from the borrower including ID, income proof, etc.

6. Fiduciary Transfer Deed: Standard form of fiduciary transfer deed to be registered

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Financial Services

Automotive

Consumer Finance

Insurance

Banking

Vehicle Leasing

Retail Finance

Relevant Teams

Legal

Finance

Credit

Compliance

Risk Management

Collections

Sales

Operations

Customer Service

Documentation

Relevant Roles

Legal Counsel

Finance Manager

Credit Officer

Compliance Officer

Risk Manager

Collections Manager

Sales Manager

Loan Officer

Contract Administrator

Document Controller

Credit Analyst

Branch Manager

Operations Manager

Customer Service Representative

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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