The General Loan Agreement serves as a fundamental legal instrument in the UAE financial landscape, used to document and formalize lending arrangements between parties. This document is essential when any entity or individual wishes to extend or receive a loan, whether for business expansion, asset acquisition, or other legitimate purposes. The agreement must comply with UAE federal laws, including the Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law (Federal Law No. 18 of 1993), with particular attention to interest rate restrictions and Sharia compliance where applicable. The General Loan Agreement typically includes detailed provisions on loan disbursement, repayment terms, security arrangements, events of default, and remedies, all structured within the UAE legal framework. It's commonly used by banks, financial institutions, and private lenders, requiring careful consideration of UAE Central Bank regulations and local commercial practices.

1. Parties: Identifies and defines the Lender and Borrower with their full legal names, addresses, and registration details if applicable

2. Background: Sets out the context of the loan agreement, including the purpose of the loan and the parties' intention to enter into the agreement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest Rate and Calculations: Details the applicable interest rate, calculation method, and payment frequency

6. Repayment Terms: Outlines the repayment schedule, installment amounts, and payment methods

7. Security: Describes any collateral or guarantees securing the loan

8. Representations and Warranties: States the facts and assurances provided by each party

9. Borrower's Covenants: Lists the ongoing obligations and commitments of the borrower

10. Events of Default: Defines circumstances that constitute default and their consequences

11. Remedies: Outlines the lender's rights and remedies in case of default

12. Governing Law and Jurisdiction: Specifies UAE law as governing law and determines jurisdiction for disputes

13. Notices: Details how formal communications between parties should be made

14. General Provisions: Contains standard boilerplate clauses including assignment, amendments, and severability