Document background
The Non Interest Bearing Loan Agreement is a specialized financing document used in the United Arab Emirates when parties wish to enter into a lending arrangement that complies with Islamic finance principles and UAE law. This document is particularly relevant for both commercial and personal lending scenarios where traditional interest-bearing loans are not suitable due to religious, cultural, or business preferences. The agreement covers crucial elements including loan amount, purpose, repayment terms, and security arrangements, while explicitly excluding any interest components to ensure Shariah compliance. It incorporates specific UAE legal requirements, including Civil Code provisions and Central Bank regulations, making it suitable for use in various contexts from personal loans to commercial financing. The document is designed to protect both lender and borrower interests while maintaining compliance with local laws and Islamic finance principles.
