Document background
The Interest Only Loan Agreement Template is designed for use in the United Arab Emirates, providing a structured framework for lending arrangements where regular payments consist solely of interest. This document type is particularly useful for situations requiring reduced initial payment obligations, such as property development, business expansion, or investment opportunities. The template incorporates all necessary elements required under UAE Federal Laws, including the Civil Code and Commercial Code, with provisions for both conventional and Islamic financing structures. It includes comprehensive sections on interest calculation, payment mechanisms, security arrangements, and enforcement rights, while ensuring compliance with UAE Central Bank regulations and local banking practices. The agreement can be customized for various lending scenarios while maintaining its enforceability under UAE law.
