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The Personal Loan Between Friends Contract Template is designed for use in the United Arab Emirates when individuals wish to formalize a lending arrangement with friends or acquaintances. This document type is particularly important in the UAE context, where personal lending must comply with both civil law requirements and Islamic finance principles. The template provides a structured framework that helps protect both parties' interests while maintaining the friendly nature of the arrangement. It includes essential elements required by UAE law such as clear identification of parties, specific loan terms, and compliant profit-sharing arrangements (if any). The document is suitable for various loan amounts and can be customized to include optional security arrangements or witness provisions as needed. It helps prevent misunderstandings by clearly documenting the agreement terms while providing a legally sound foundation for the lending arrangement.

1. Parties: Identification of the Lender and Borrower with full legal names and contact details

2. Background: Brief context of the loan arrangement between the friends

3. Definitions: Key terms used in the agreement defined for clarity

4. Loan Amount and Purpose: Specific amount being borrowed and its intended use

5. Repayment Terms: Payment schedule, method of payment, and duration of the loan

6. Interest (Profit Rate): Terms of any profit-sharing or administrative fees, ensuring Sharia compliance

7. Rights and Obligations: Key responsibilities of both parties including communication requirements

8. Default and Remedies: Consequences of missing payments and resolution procedures

9. Representations and Warranties: Confirmations by both parties about their capacity to enter the agreement

10. Governing Law: Confirmation that UAE law governs the agreement

11. Execution: Signature blocks and execution requirements