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Loan Contract for United Arab Emirates

Loan Contract Template for United Arab Emirates

A comprehensive loan contract template designed for use in the United Arab Emirates, compliant with UAE Civil Code, Commercial Code, and relevant banking regulations. This template encompasses essential provisions for commercial lending, including detailed terms for loan disbursement, repayment schedules, security arrangements, and default provisions. The document incorporates UAE-specific legal requirements while maintaining flexibility to accommodate various lending scenarios, from corporate loans to structured financing arrangements. It includes provisions for both conventional and Islamic financing structures, ensuring broad applicability within the UAE legal framework.

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Loan Contract

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What is a Loan Contract?

This Loan Contract Template is designed for use in the United Arab Emirates, providing a standardized framework for documenting loan transactions while ensuring compliance with UAE laws and regulations. The template is suitable for various lending scenarios, from simple bilateral loans to more complex financing arrangements. It incorporates all essential elements required under UAE law, including Civil Code requirements, Commercial Code provisions, and Central Bank regulations. The template includes customizable sections for loan amount, interest calculations (or profit rate for Islamic facilities), repayment terms, security arrangements, and events of default. It can be adapted for both conventional and Islamic financing structures, making it versatile for different financial institutions and borrower needs. The document is structured to protect lenders' interests while maintaining fairness and transparency in line with UAE legal principles.

What sections should be included in a Loan Contract?

1. Parties: Identification of lender and borrower with full legal names and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount and permitted use of funds

5. Interest Rate and Calculation: Details of applicable interest rate, calculation method and payment frequency

6. Repayment Terms: Schedule of repayments, payment methods and prepayment provisions

7. Conditions Precedent: Conditions that must be satisfied before loan disbursement

8. Representations and Warranties: Borrower's confirmations about their legal and financial status

9. Covenants: Ongoing obligations of the borrower during the loan term

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

11. Security: Details of any security or guarantee provided for the loan

12. Fees and Expenses: All applicable fees, charges and cost allocation

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Specification of UAE law and jurisdiction

What sections are optional to include in a Loan Contract?

1. Islamic Finance Provisions: Required if the loan needs to be Sharia-compliant

2. Guarantor Provisions: Required if there is a third-party guarantor for the loan

3. Assignment and Transfer: Include if the loan may be transferred or syndicated

4. Cross-Default: Include for borrowers with multiple lending relationships

5. Insurance Requirements: Required if specific insurance coverage is mandatory

6. Change of Control: Include for corporate borrowers to address ownership changes

7. Joint and Several Liability: Required for multiple borrowers

8. Currency Provisions: Include if loan or repayments involve multiple currencies

What schedules should be included in a Loan Contract?

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Security Details: Specific details of collateral or security arrangements

3. Conditions Precedent Documents: List of required documents for loan disbursement

4. Form of Drawdown Notice: Template for requesting loan disbursement

5. Form of Compliance Certificate: Template for periodic compliance reporting

6. Permitted Security Interests: List of pre-approved security interests if applicable

7. Fee Schedule: Detailed breakdown of all applicable fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions








































Clauses






























Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Healthcare

Technology

Energy

Transportation

Hospitality

Education

Small and Medium Enterprises

Corporate Services

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Corporate Banking

Islamic Banking

Operations

Treasury

Risk Management

Corporate Finance

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Operations Manager

Credit Risk Manager

Relationship Manager

Compliance Officer

Treasury Manager

Financial Controller

Banking Executive

Loan Officer

Corporate Finance Manager

Islamic Banking Specialist

Risk Assessment Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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