Document background
The Private Lending Term Sheet Template is designed for use in the United Arab Emirates when parties seek to document the preliminary terms of a private loan arrangement. This document serves as a foundational instrument that precedes the full loan agreement, capturing essential commercial terms while ensuring compliance with UAE federal laws, including UAE Federal Law No. 5 of 1985 (Civil Code) and relevant Central Bank regulations. The template is structured to accommodate various lending scenarios, from simple personal loans to complex corporate arrangements, incorporating provisions for both conventional and Islamic finance structures. It includes key information such as facility details, pricing, security requirements, conditions precedent, and basic covenants, while remaining adaptable to specific transaction requirements. This document is particularly valuable in the UAE market where private lending plays a significant role in both personal and business financing, offering a structured approach to documenting lending terms in accordance with local legal requirements.
