Personal Loan in Dubai/UAE-Agreement
Personal loan agreement
All personal loans agreements in Dubai/ UAE have a date which they are entered,it has two parties involved in the agreement, (the bank in Dubai & the client/Borrower),thei agreement is signed at a particular location, for example,Dubai,Abu Dhabi, or any other Emirates in The UAE, it also contains the Identity particulars of the Bank in UAE and the client in question, the address of the borrower and the bank in question.
So the borrower/Client, basically applies to obtain a personal loan from the bank, and agrees to repay the principal, plus the interest, over an agreed given period of time whereas the bank in Dubai/UAE has agreed to grant the borrower/client a personal loan in accordance to the terms and conditions stipulated in the agreement (hereinafter refered to as the :loan”) .
Below is an example of a personal loan agreement between the two parties:-
- The loan details -This basically focuses on the principal amount of the loan between the bank in Dubai/UAE and the Client/Borrower.The loan amount should be clearly communicated, and the currency clerly denoted ,with the interest rate clerly attached to the agreement. The rate of interest should be communicated to the client as a reducing balance rate per annum, fixed interest rate per annum and the emi in AED on a monthly basis.
- Payment of the loan and interest details -The borrower should undertake to pay the principal amount of the loan and the interests amounting to the agreed emi AED figure on a monthly instalment basis clearly specifying the amoung in AED to be paid each and every month.The agreement should specify the due date of the first instalment,the instalment payment day on a monthly basis, and the last installment’s due date.All these features of the agreement, have to be agreed andpinned on a schedule.
- However. , it is known and always put as a provision that, the repayment shall vary in the case the borrower defaults or enters into another agreement with the bank, to defer an instalment
- Disbursement of the loan-Article 1 -This article is a very simple and straightforward one, which stipulates that the principal loan shall be disbursed to the account of the borrower/Client in Dubai/UAE upon the competition of the securities and documentation as contained in the article s of the agreement. These articles are basically intertwined.
- Documentation and Securities-Article 2 -As a guarantee and security to pay the loan , interest, commissions, fees, and any other amounts which may become due under this agreement, the borrower commits and undertakes as follows:-
a)In the event that the loan is granted against personal guarantee, the borrower undertakes to provide the bank with a personal guarantee form approved by the bank in Dubai and signed by the gurantor(s).
b)Provide the bank with a letter from the borrower’s employer, pursuant to which the employer undertakes to transfer, his monthly salaryand the end of service benefits, to the bank throughout the end of the loan period.This clause acts as a security measure apart from requesting two security cheques for every annum.loans in dubai, loans in uae, personal loans in dubai, personal loans in uae, personal loans in dubai without salary transfer, personal loans without salary transfer in dubai, Personal Loan in UAE Without Salary Transfer, personal loan without salary transfer in uae, personal loans in uae without salary transfer, uae bank loan without salary transfer, uae loans without salary transfer