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The Interest Free Loan Agreement is a essential legal document used in the United Arab Emirates for documenting financial arrangements where one party (the lender) provides a loan to another party (the borrower) without charging interest, in compliance with Sharia principles and UAE law. This document is particularly relevant in Islamic finance transactions, family lending, corporate interest-free financing, and other scenarios where traditional interest-bearing loans are not suitable or desired. The agreement incorporates all necessary elements required under UAE Federal Law No. 5 of 1985 (Civil Code) and ensures compliance with Islamic finance principles of Qard Hassan. It includes provisions for loan amount, disbursement conditions, repayment terms, events of default, and optional security arrangements, while maintaining its interest-free nature throughout the transaction.

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

2. Background: Context of the loan agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

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

5. Interest Free Declaration: Express declaration that the loan is interest-free and compliant with Sharia principles

6. Disbursement Terms: Conditions and process for disbursing the loan amount

7. Repayment Terms: Schedule and method of repayment of the principal amount

8. Representations and Warranties: Statements of fact and promises made by the Borrower

9. Events of Default: Circumstances that constitute default and consequences

10. Governing Law and Jurisdiction: Specification of UAE law governance and jurisdiction for disputes

11. Notices: Process and addresses for formal communications between parties

12. Entire Agreement: Confirmation that the document represents the complete agreement between parties