Document background
A Car Loan Agreement Between Family members is essential when one family member provides financial assistance to another for vehicle purchase in Malaysia. This document serves as a formal record of the arrangement while acknowledging the unique nature of family relationships. It is particularly useful in situations where families prefer to handle vehicle financing internally rather than through traditional financial institutions. The agreement helps prevent future misunderstandings by clearly documenting loan terms, repayment schedules, and vehicle ownership details. Being governed by Malaysian law, it incorporates relevant aspects of the Contracts Act 1950, Hire-Purchase Act 1967, and other applicable legislation while maintaining flexibility to accommodate family-specific arrangements. The document is designed to protect both parties' interests while preserving family harmony through clear documentation of expectations and obligations.
