Document background
The Loan Agreement With Car As Collateral is a specialized financing document used in the United Arab Emirates when extending credit facilities secured by a vehicle. This document type is commonly utilized in both consumer and commercial financing scenarios, where the vehicle serves as primary security for the loan. The agreement must comply with UAE Federal Laws, including specific requirements for security creation under the Pledge of Movable Properties Law and Central Bank regulations. It includes comprehensive details about the loan facility, vehicle description, security arrangements, borrower obligations, and enforcement mechanisms. The document is particularly relevant in the UAE market where vehicle financing is a significant component of both personal and business lending, requiring careful consideration of local registration requirements and Sharia compliance where applicable.
