The Formal Letter for Borrowing Money is a crucial document used in the United Arab Emirates when seeking financial assistance from banks, financial institutions, or private lenders. This document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 14 of 2018 (Central Bank Law), while potentially incorporating Islamic finance principles. It serves as the initial formal request and documentation of loan terms, typically preceding more detailed loan agreements. The letter should be drafted carefully to include all essential information required by UAE banking regulations, including clear identification of parties, loan amount, purpose, repayment terms, and any security offered. This document is particularly important in the UAE context as it often forms the basis for subsequent formal loan agreements and must consider both conventional and Islamic banking requirements.

1. Sender's Details: Full name, address, and contact information of the borrower

2. Date: Date of the letter following UAE standard format

3. Recipient's Details: Full name, address, and contact information of the lender

4. Subject Line: Clear indication that this is a formal request for a loan

5. Salutation: Formal greeting to the recipient

6. Loan Request Statement: Clear statement of the amount being borrowed and purpose

7. Loan Terms: Specific details about the loan including amount, duration, and repayment terms

8. Repayment Plan: Detailed explanation of how and when the loan will be repaid

9. Security/Collateral: Description of any assets or guarantees offered as security

10. Declaration of Financial Status: Brief statement about current financial position and ability to repay

11. Closing Statement: Formal closing with acknowledgment of terms and appreciation

12. Signature Block: Space for signature, printed name, and date