Document background
The Hand Loan Agreement is commonly used in the UAE for documenting personal lending arrangements between individuals or small businesses. This type of agreement is particularly relevant when formal banking channels are not preferred or required, and parties wish to document their lending arrangement in compliance with UAE law. The document must adhere to the UAE Civil Code (Federal Law No. 5 of 1985) and consider Sharia principles, especially regarding interest provisions. A Hand Loan Agreement typically includes essential details such as loan amount, repayment schedule, default provisions, and both parties' obligations. It's crucial in the UAE context as it provides legal protection for both lender and borrower while ensuring the arrangement is formally documented and enforceable under local law.
