Document background
The Rollover Loan Agreement is a specialized financing document used in the UAE banking sector when a lender provides a facility that can be repeatedly renewed without the need for a new agreement. It is particularly suited for businesses requiring ongoing financing with flexible interest periods and rate resets. The document must comply with UAE Federal Law No. 14 of 2018, Central Bank regulations, and where applicable, UAE Civil Transactions Law. It contains comprehensive provisions covering facility terms, interest calculations (typically EIBOR-based), security arrangements, and enforcement mechanisms. This type of agreement is commonly used in corporate lending, project finance, and general commercial banking in the UAE, offering flexibility while maintaining regulatory compliance.
