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Lending Guidelines For Motorcycle Loan 2024

This document outlines the lending guidelines for motorcycle loans provided by a cooperative to its members. It details the application process which requires specifications of the desired motorcycle and additional legal documents. The borrower must provide a 5% down payment of the purchase price, and higher down payments may be required depending on creditworthiness. The cooperative will then purchase the motorcycle and hold the title until full payment. The borrower is responsible for registration, insurance, and payments, and the motorcycle may be repossessed if payments are more than 3 months late.

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Arnel Ayco
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117 views1 page

Lending Guidelines For Motorcycle Loan 2024

This document outlines the lending guidelines for motorcycle loans provided by a cooperative to its members. It details the application process which requires specifications of the desired motorcycle and additional legal documents. The borrower must provide a 5% down payment of the purchase price, and higher down payments may be required depending on creditworthiness. The cooperative will then purchase the motorcycle and hold the title until full payment. The borrower is responsible for registration, insurance, and payments, and the motorcycle may be repossessed if payments are more than 3 months late.

Uploaded by

Arnel Ayco
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Lending Guidelines for Motorcycle Loan

- refers to motorcycle loan granted to members in partnership with a pre-selected motorcycle dealer.

I. The borrower may canvass to the identified motorcycle supplier and get a copy of the
specification/quotation of desired motorcycle unit, such as:
 Model type
 Brand
 Color
 Serial Number
 Chasis Number

II. The said specification/quotation must be attached to the loan application for the preparation of
additional documents which may include, among others, the duly notarized Promissory Note with Chattel
Mortgage, Terms & Conditions & Special Power of Attorney.

III. Five (5%) of the purchase price is required as down payment from the borrower to cover processing
fees, documentary stamp tax, if any & others. However, in cases where the standard capacity to pay of the
borrower does not match the loanable amount, a higher down payment as equity may be required from
the borrower.

IV. After receipt of the down payment and accomplishment of the said additional documents, the
cooperative shall proceed with the full payment to the motorcycle supplier and thereafter claims the unit.
The supplier must process the Certificate of Registration (CR) and the Official Receipt (OR) of the newly
acquired motorcycle with the Land Transportation Office (LTO) in the name of __________.

V. The ______________(name of LTO) shall then execute the Deed of Sale in favor of the Borrower.

VI. The cooperative shall withhold the original copy of the Certificate of Registration (CR) of the motor
vehicle, as well as the Official Receipt (OR) until certificate of full payment is issued to the borrower.
However, this is not to preclude the borrower from obtaining a photocopy thereof. In case the original OR
is needed during the registration, the same may be borrowed but with a deposit of Five Hundred Pesos
shall be required. It shall be given back after receipt of the original OR.

VII. Renewal of LTO registration and yearly insurance policy of the motorcycle will be in the name and for
the exclusive account of the borrower. The borrower should secure a comprehensive type of insurance to
include third party liability and property damages. The borrower then is also obligated to furnish the
cooperative a copy of the unit’s yearly comprehensive insurance policy and the OR until the full payment
date;

VIII. In case of accidents and/or untoward incidents, the cooperative has no liability/accountability
whatsoever;

IX. Three (3) months of non-payment of amortization by the borrower compels the Cooperative to
repossess the unit.

X. Payment of the arrears on motorcycle loan and advance one-month deposit are mandatory
requirements for the release of the motorcycle unit should it be repossessed by the cooperative;

XI. After three months (3months) from repossession and without payment of the arrears on motorcycle
loan, Cooperative will offer the unit to interested buyers or borrowers, the value thereof will be the unpaid
mortgage plus any incidental cost thereto.

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