Kaagazaat

Loan Takeover Agreement for a Financed Vehicle

At a glance

Price: Free, always.
Stamp duty: This is an agreement between two private persons for the sale of a movable vehicle with the loan; the stamp on it, if any, is the fixed amount for an agreement, and no figure is stated here because Punjab and Chandigarh revise theirs from time to time.
Registration: Not registrable under the Registration Act, 1908: it concerns a movable vehicle, not land or buildings.
Witnesses: Two witnesses are sensible, each writing full name, address and ID reference beside the signature.

Free

Free, always.

Free: up to 5 documents a day.

Guided questions, full draft on screen, download in Word.

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Also called

car loan takeover
vehicle loan transfer agreement
take over EMI of car
loan transfer on sale of vehicle
loan assumption agreement vehicle
gaadi ki kist ka takeover
गाड़ी की किस्त टेकओवर
ਗੱਡੀ ਦੀ ਕਿਸ਼ਤ ਟੇਕਓਵਰ

When you need it

The owner of a car or two-wheeler still has a running loan on it and wants to hand it over to someone who will keep paying the instalments (EMIs). This Agreement records what the Incoming Owner pays now (if anything), the loan and its instalments, who pays them from when, what happens to the loan, the RC and the insurance, and that each side protects the other from the other's failures.

The Financer is not a party to this Agreement, and the loan stays between the Financer and the person whose name is on it until the Financer agrees otherwise. The vehicle is hypothecated to the Financer, so it cannot be transferred on the RC without the Financer's no-objection. Do not hand over the vehicle and start paying the EMIs on a handshake. Get the Financer's written consent first, or at the least say in this Agreement that it has not yet been given. Not for a vehicle with no loan (use Car / Bike Sale Agreement). Not for closing the loan and getting the financer's no-objection (use Vehicle Loan NOC / Hypothecation Termination Letter).

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

This is an agreement between two private persons for the sale of a movable vehicle with the loan; the stamp on it, if any, is the fixed amount for an agreement, and no figure is stated here because Punjab and Chandigarh revise theirs from time to time. Check the current amount on the official e-stamping portal before you buy the paper. The Financer may ask for its own assumption papers, which carry their own stamp.

Registration

Not registrable under the Registration Act, 1908: it concerns a movable vehicle, not land or buildings. Any change to the vehicle’s registration record is made separately, at the Registering Authority.

Notarisation

Not required by law. A notary only records that the signatories appeared and signed, which makes it harder to deny a signature later. Carry original photo ID.

Witnesses

Two witnesses are sensible, each writing full name, address and ID reference beside the signature. A witness is an adult who is not a party to the document.

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Sample preview — placeholder answers, not your data

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LOAN TAKEOVER AGREEMENT FOR A FINANCED VEHICLE

This Agreement is made at Chandigarh on 2 April 2026 between:

Rajinder Singh, of House No. 14, Sector 70, SAS Nagar (Mohali), Punjab (the "Present Owner"); and

Mohit Arora, of House No. 203, Sector 21, Panchkula (the "Incoming Owner").

1. THE VEHICLE AND THE LOAN

1.1 The Present Owner is the registered owner of the vehicle Maruti Suzuki Swift VXi, white, registration number PB10 AB 1234, chassis number MA3EWDE1S00123456, engine number K12MN1234567 (the "Vehicle").

1.2 The Vehicle is hypothecated to ABC Bank Limited, Sector 34 Branch, Chandigarh (the "Financer") under loan account no. AUTO0041178 (the "Loan"). About ₹4,20,000 (Rupees Four Lakh Twenty Thousand only) is outstanding on the date of this Agreement, repayable in instalments of ₹14,500 (Rupees Fourteen Thousand Five Hundred only) a month, with 32 instalments left.

1.3 The Financer’s position: The Financer has agreed in writing to the loan being taken over by the Incoming Owner.

2. WHAT THE INCOMING OWNER TAKES ON AND PAYS

2.1 The Incoming Owner takes the Vehicle and agrees to pay every instalment of the Loan that falls due on or after 3 April 2026, on time, until the Loan is fully repaid, together with any interest, late charge and fee the Financer lawfully charges for those instalments. Payment shall be made directly into the loan account, with a copy of each receipt sent to the Present Owner.

2.2 On signing, the Incoming Owner has paid the Present Owner ₹1,50,000 (Rupees One Lakh Fifty Thousand only), receipt of which the Present Owner acknowledges, for the Present Owner’s interest in the Vehicle.

2.3 The Present Owner shall pay every instalment that fell due before 3 April 2026.

3. HANDOVER, RC AND INSURANCE

3.1 The Present Owner hands the Vehicle to the Incoming Owner on 1 April 2026, with its keys, service book and papers.

3.2 Until the Financer’s hypothecation is dealt with, the RC continues to show the Present Owner and the Financer. The Parties shall together ask the Financer for its consent and for whatever papers it needs, and then have the ownership transferred to the Incoming Owner at the Registering Authority, using the forms the Rules prescribe, with the Financer’s no-objection or a fresh hypothecation in the Incoming Owner’s name as the Financer requires. Each Party shall sign the forms and papers asked of it within seven days of being asked.

3.3 The Incoming Owner shall keep the Vehicle insured throughout, and shall have the insurance policy moved into the Incoming Owner’s name within the time the law allows. The costs of transfer at the Registering Authority and of the insurance are borne by the Incoming Owner, and any fee the Financer charges for the takeover is to be met as follows: borne by the Incoming Owner.

Questions about this document

Does the Loan Takeover Agreement for a Financed Vehicle need stamp paper or stamp duty in Punjab and Chandigarh?

See the full position on stamp duty, registration and witnesses

Does the Loan Takeover Agreement for a Financed Vehicle need registration in Punjab and Chandigarh?

Not registrable under the Registration Act, 1908: it concerns a movable vehicle, not land or buildings.

See the full position on stamp duty, registration and witnesses

What does the Loan Takeover Agreement for a Financed Vehicle cost on Kaagazaat?

Free, always.

Does the Loan Takeover Agreement for a Financed Vehicle need witnesses?

Two witnesses are sensible, each writing full name, address and ID reference beside the signature.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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