Document background
The Title Loan Agreement Template is designed for use in the United Arab Emirates when a lender provides financing secured by a vehicle title. This document is essential for financial institutions, banks, and licensed lenders operating in the UAE who offer vehicle-secured loans. The template ensures compliance with UAE Federal Law No. 5 of 1985 (Civil Code), Federal Law No. 18 of 1993 (Commercial Code), and relevant Emirates' traffic and vehicle registration regulations. It includes comprehensive provisions for loan terms, security interests, vehicle maintenance requirements, default procedures, and enforcement mechanisms. The agreement can be customized for both conventional and Islamic financing structures, incorporating necessary Sharia-compliant provisions where required. This template is particularly valuable for situations where borrowers seek to obtain financing while retaining possession and use of their vehicles, providing lenders with security interest in the vehicle title as collateral.
