Money Lending Agreement Template for United Arab Emirates

The Money Lending Agreement is a crucial document used in the United Arab Emirates for structuring and documenting loan transactions between lenders and borrowers. It serves as the primary contract governing the lending relationship, whether for business expansion, asset acquisition, or other financing needs. The agreement must comply with UAE federal laws, including UAE Federal Law No. 5 of 1985 (Civil Code) and UAE Federal Law No. 14 of 2018 (Central Bank Law), while potentially incorporating Sharia-compliant structures where required. It includes essential provisions for loan amount, repayment terms, security arrangements, and default remedies, all within the UAE's regulatory framework. This document is particularly important given the UAE's position as a major financial hub and its strict regulatory requirements for lending activities.

1. Parties: Identification of the Lender and Borrower with full legal names, addresses, and registration details

2. Background: Context of the loan agreement and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the principal amount and permitted use of the loan funds

5. Interest/Profit Rate: Details of applicable interest or profit rate (ensuring Sharia compliance if required), calculation method, and payment schedule

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Conditions Precedent: Conditions that must be satisfied before the loan becomes effective

8. Representations and Warranties: Statements of fact and assurances given by the Borrower

9. Borrower's Covenants: Ongoing obligations and restrictions on the Borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement and Remedies: Lender's rights and remedies upon default

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes