Document background
This Payday Loan Contract Template is specifically designed for financial institutions operating within the United Arab Emirates' regulatory framework. It serves as a standardized agreement for short-term, small-sum loans typically aligned with the borrower's payday. The template incorporates essential elements required by UAE Federal Law No. 14 of 2018 and Central Bank regulations, including maximum interest rate caps, mandatory disclosure requirements, and consumer protection provisions. It can be adapted for both conventional and Islamic banking structures, featuring options for both interest-based and profit-rate calculations. The document includes necessary clauses for salary transfer arrangements, post-dated cheques, and electronic payment mechanisms commonly used in UAE banking practices.
