Document background
The Amended Loan Agreement is utilized when parties need to modify terms of an existing Shariah-compliant loan agreement in Saudi Arabia. This document type is essential when circumstances require changes to original loan terms, such as extending repayment periods, adjusting profit rates, modifying security arrangements, or accommodating other material changes while ensuring continued Shariah compliance. It must align with Saudi Arabian banking regulations, including the Banking Control Law and SAMA guidelines, and typically requires Shariah board approval. The document preserves the original agreement's framework while clearly delineating modified terms, making it crucial for loan restructuring, refinancing, or addressing changed circumstances in the borrower-lender relationship.
