Document background
The Simple Unsecured Loan Agreement is designed for use in Qatar when parties wish to document a lending arrangement without security or collateral. This document type is commonly used for both commercial and personal loans where the lender relies on the borrower's creditworthiness rather than specific assets as security. The agreement must comply with Qatar's dual legal system, incorporating both civil law requirements under the Qatar Civil Code and Islamic finance principles. It includes essential provisions regarding loan amount, profit rate structure (ensuring Sharia compliance), repayment terms, events of default, and remedies. This template is particularly useful for smaller-scale loans, intra-company lending, or situations where the parties have an established relationship and security is not deemed necessary. The document ensures compliance with Qatar Central Bank regulations while maintaining flexibility for various business contexts.
