Document background
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.
