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The Personal Loan Contract Between Friends is designed for situations where individuals in the UAE wish to formalize a lending arrangement with someone they know personally, while ensuring legal protection for both parties. This document is particularly useful when friends or acquaintances agree to a loan that needs to be documented properly for legal certainty and future reference. It incorporates UAE Civil Code requirements and Sharia principles, making it suitable for use in the UAE jurisdiction. The contract includes essential elements such as loan amount, repayment terms, profit rate (if any), and default provisions, while maintaining the spirit of a friendly arrangement. It's structured to be both legally robust and accessible to non-legal professionals, providing a balanced framework that protects both lender and borrower interests.

1. Parties: Identification and details of the lender and borrower, including full legal names, Emirates ID numbers, and contact information

2. Background: Brief context of the friendly loan arrangement and the relationship between parties

3. Definitions: Key terms used in the agreement defined for clarity

4. Loan Amount and Purpose: Specification of the loan amount in AED and the intended purpose of the loan

5. Disbursement: Details of how and when the loan amount will be transferred to the borrower

6. Repayment Terms: Clear schedule of repayments, including amounts and due dates

7. Profit Rate: Any agreed profit rate (compliant with Sharia principles) and calculation method

8. Default Provisions: Consequences and procedures in case of missed payments or default

9. Representations and Warranties: Basic statements confirming the parties' capacity to enter into the agreement

10. Governing Law and Jurisdiction: Confirmation that UAE law governs the agreement and UAE courts have jurisdiction