Document background
The General Loan Agreement serves as a fundamental legal instrument in the UAE financial landscape, used to document and formalize lending arrangements between parties. This document is essential when any entity or individual wishes to extend or receive a loan, whether for business expansion, asset acquisition, or other legitimate purposes. The agreement must comply with UAE federal laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), with particular attention to interest rate restrictions and Sharia compliance where applicable. The General Loan Agreement typically includes detailed provisions on loan disbursement, repayment terms, security arrangements, events of default, and remedies, all structured within the UAE legal framework. It's commonly used by banks, financial institutions, and private lenders, requiring careful consideration of UAE Central Bank regulations and local commercial practices.
