Document background
The Simple Loan Agreement is a fundamental legal document used in the United Arab Emirates for documenting straightforward lending arrangements between parties. This agreement is particularly suitable for corporate or individual lending scenarios where the loan structure is uncomplicated and doesn't require complex financial covenants or security arrangements. The document must comply with UAE Civil Code (Federal Law No. 5 of 1985) and Central Bank regulations, including interest rate restrictions and potential Shariah compliance requirements. It typically includes essential terms such as loan amount, repayment schedule, interest calculations (within UAE legal limits), events of default, and enforcement provisions. This agreement type is commonly used for business loans, personal lending, or intra-company financing where a clear and legally enforceable record of the lending arrangement is required.
