51Ƶ

Loan Sharing Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for sharing loan participations between multiple lenders. The document outlines the rights, obligations, and responsibilities of all parties involved in the loan sharing arrangement, including profit distribution mechanisms, security arrangements, and compliance requirements. It incorporates relevant UAE banking regulations and may include Sharia-compliant structures where applicable. The agreement addresses risk allocation, payment mechanisms, default scenarios, and remedies while ensuring compliance with UAE Central Bank regulations and local financial laws.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Loan Sharing Agreement?

The Loan Sharing Agreement is a crucial document used when multiple lenders wish to participate in a single loan facility while maintaining clear legal structure and risk allocation. This agreement type is particularly relevant in the UAE market where both conventional and Islamic finance principles may need to be accommodated. The document establishes the framework for loan participation, including contribution ratios, profit-sharing mechanisms, and risk allocation between parties. It ensures compliance with UAE banking regulations, including Central Bank requirements and, where applicable, Sharia principles. The agreement is essential for syndicated lending, club deals, and other multi-lender arrangements in the UAE, providing clarity on administrative responsibilities, payment mechanics, and security arrangements. It includes specific provisions addressing UAE legal requirements, local market practices, and regulatory compliance obligations.

What sections should be included in a Loan Sharing Agreement?

1. Parties: Identifies and defines all parties to the agreement, including lenders, borrowers, and any administrative agents

2. Background: Sets out the context of the agreement and the parties' intentions to enter into a loan sharing arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Loan Details: Specifies the total loan amount, purpose, and sharing proportions between parties

5. Participation Mechanism: Details how the loan sharing arrangement works, including profit/loss sharing ratios

6. Payment Terms: Outlines payment schedules, profit distribution mechanism, and payment procedures

7. Rights and Obligations: Defines the rights and obligations of each party under the agreement

8. Representations and Warranties: Contains statements of fact and assurances from all parties

9. Sharia Compliance: Confirms compliance with Islamic finance principles and structures

10. Security: Details any security or collateral arrangements supporting the loan

11. Events of Default: Lists circumstances constituting default and corresponding remedies

12. Governing Law and Jurisdiction: Specifies UAE law as governing law and determines jurisdiction for disputes

13. Notices: Sets out how formal communications between parties should be made

14. Boilerplate Provisions: Standard contractual provisions including severability, entire agreement, and amendments

What sections are optional to include in a Loan Sharing Agreement?

1. Agent Provisions: Required when an administrative agent is appointed to manage the loan sharing arrangement

2. Islamic Finance Structure: Detailed section needed when the agreement follows specific Islamic finance structures like Mudaraba or Musharaka

3. Cross-Border Provisions: Required when parties are from different jurisdictions or when cross-border transfers are involved

4. Syndication Rights: Include when parties may want to syndicate their share of the loan

5. Tax Provisions: Detailed tax clauses needed when tax implications are significant or when involving international parties

6. Regulatory Compliance: Additional regulatory requirements when dealing with regulated entities or specific sectors

7. Force Majeure: Detailed provisions for unforeseen circumstances affecting loan performance

What schedules should be included in a Loan Sharing Agreement?

1. Schedule 1 - Loan Participation Details: Detailed breakdown of each party's participation percentage and contribution amount

2. Schedule 2 - Payment Schedule: Detailed payment dates, amounts, and distribution mechanics

3. Schedule 3 - Form of Transfer Certificate: Template for transferring loan participations between parties

4. Schedule 4 - Security Details: Comprehensive list and description of security or collateral

5. Schedule 5 - Conditions Precedent: List of documents and conditions required before agreement becomes effective

6. Schedule 6 - Contact Details: Contact information for all parties and authorized representatives

7. Appendix A - Calculation Methodology: Detailed explanation of how profit/loss shares are calculated

8. Appendix B - Compliance Certificates: Templates for ongoing compliance certification

9. Appendix C - Sharia Pronouncement: Sharia board approval and structure certification if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use

Find the exact document you need

Master Loan Participation Agreement

UAE-governed agreement establishing framework for financial institutions to participate in loan facilities, compliant with UAE Federal Laws and banking regulations.

Download

Loan On Rental Agreement

UAE-governed agreement establishing a loan facility secured against property rental payments, combining lending and property law elements under UAE regulations.

Download

Loan Facilitation Agreement

UAE-governed agreement establishing terms for loan facilitation services between borrowers and lenders, compliant with UAE banking and finance laws.

Download

Individual To Individual Loan Agreement

UAE-governed loan agreement between private individuals, compliant with local laws and Sharia principles.

Download

Agreement For Financial Support

UAE-governed agreement establishing terms and conditions for providing financial support, including disbursement, repayment, and security arrangements.

Download

Simple Business Loan Agreement

UAE-governed loan agreement defining terms and conditions for business financing, compliant with UAE Federal Laws and banking regulations.

Download

Loan Payment Agreement

UAE-governed agreement establishing loan repayment terms between lender and borrower, compliant with UAE federal laws and banking regulations.

Download

Simple Loan Repayment Agreement

UAE-governed agreement establishing loan repayment terms and conditions between parties, compliant with UAE Civil Code and banking regulations.

Download

Royalty Financing Agreement

UAE-governed agreement establishing terms for revenue-based financing where investors receive ongoing royalty payments in exchange for capital investment.

Download

Loan For Use Agreement

A UAE-governed agreement for the temporary, gratuitous loan of property, compliant with UAE Civil Code and Sharia law principles.

Download

Loan And Mortgage Agreement

UAE-governed agreement establishing terms for a property-secured loan, combining lending provisions with mortgage requirements under UAE Federal Laws and optional Sharia compliance.

Download

Film Financing Agreement

UAE-governed agreement establishing terms and conditions for film production financing, including funding structure, rights, and obligations under UAE media and financial regulations.

Download

Vehicle Payment Plan Agreement

UAE-governed agreement establishing terms for vehicle purchase through structured installment payments, including payment schedules, ownership rights, and compliance requirements.

Download

Undertaking Loan Agreement

UAE-governed loan agreement with borrower undertakings, detailing facility terms and enforcement mechanisms under UAE law.

Download

Rent Agreement For Loan

UAE-governed agreement combining rental and financing arrangements, structuring property rental with associated loan terms in compliance with UAE federal and Islamic finance laws.

Download

Promissory Loan Agreement

UAE-governed loan agreement with promissory note security, detailing loan terms, repayment conditions, and enforcement mechanisms under UAE law.

Download

Margin Loan Agreement

UAE-governed agreement establishing terms for margin lending facilities secured by financial instruments, compliant with UAE Central Bank and SCA regulations.

Download

Loan Swap Agreement

UAE-governed agreement for exchanging loan payment obligations between parties, incorporating local banking regulations and optional Shariah compliance.

Download

Loan Note Agreement

A UAE-governed financing document evidencing debt obligations and loan facility terms, incorporating local legal requirements and banking regulations.

Download

Financing Contract Agreement

A UAE law-governed agreement establishing terms and conditions for financing arrangements between lenders and borrowers, incorporating local regulatory requirements and financing structures.

Download

Financial Assistance Agreement

UAE-governed agreement establishing terms for financial assistance between a lender and borrower, incorporating local banking regulations and optional Sharia compliance.

Download

Financial Agreement Between Two Parties

UAE-compliant financial agreement template establishing terms and conditions for financial arrangements between two parties, incorporating UAE Federal Law requirements.

Download

Equipment Lease Purchase Agreement

UAE-governed agreement for equipment leasing with purchase option, detailing financial terms, maintenance obligations, and ownership transfer conditions.

Download

Bridge Financing Agreement

UAE-governed agreement establishing terms for temporary financing to bridge gaps between immediate funding needs and long-term financing arrangements.

Download

Bank Guarantee Agreement

A UAE-governed agreement where a bank commits to pay a specified sum to a beneficiary upon demand, subject to defined terms and UAE banking regulations.

Download

Unsecured Loan Agreement Between Two Companies

UAE-governed unsecured loan agreement between companies, establishing terms for corporate lending without collateral under UAE Federal Laws.

Download

Municipal Lease Purchase Agreement

UAE-governed agreement enabling municipalities to acquire properties through lease-to-own arrangements, combining leasing and purchasing elements under local authority guidelines.

Download

Debtor In Possession Loan Agreement

A UAE-law governed agreement for post-petition financing to a company in bankruptcy proceedings, establishing loan terms and super-priority status under UAE Bankruptcy Law.

Download

Standard Hire Purchase Agreement

UAE-governed agreement for asset purchase through installments, with ownership retention by seller until final payment.

Download

Mortgage Loan Purchase And Sale Agreement

UAE-governed agreement for the sale and transfer of mortgage loans between financial institutions, incorporating local banking and property law requirements.

Download

Simple Loan Agreement Between Friends

UAE-compliant loan agreement template for documenting personal loans between friends, incorporating local legal requirements and Islamic law principles.

Download

Mortgage Bond Agreement

UAE-governed security agreement creating a mortgage over real property, complying with UAE Federal Laws and local emirate regulations.

Download

Consortium Loan Agreement

UAE-governed syndicated loan agreement establishing terms for multiple lenders providing financing to a borrower, including facility management, security arrangements, and lender coordination provisions.

Download

Binding Loan Agreement

UAE-governed loan agreement establishing terms and conditions for a secured lending facility, incorporating local law requirements and Sharia compliance considerations.

Download

Medical Equipment Loan Agreement

UAE-governed agreement for medical equipment loans between healthcare entities, incorporating local healthcare regulations and safety standards.

Download

Loan Commission Agreement

UAE-governed agreement establishing commission terms for loan facilitation services between financial institutions and commission agents.

Download

Jewelry Loan Agreement

UAE-governed agreement for temporary jewelry loans, including valuation, insurance, and security requirements under UAE Federal Laws.

Download

Lease To Own Agreement For Vehicle

UAE-governed agreement establishing terms for vehicle lease-to-own arrangement, including payment structure and ownership transfer conditions.

Download

Loan Referral Agreement

UAE-governed agreement establishing terms for referring potential borrowers to financial institutions, including commission structures and compliance requirements.

Download

Lending Loan Agreement

UAE-governed loan agreement establishing terms and conditions for lending arrangements, compliant with UAE Civil and Commercial Codes.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it