��������Ƶ

The Loan Agreement Between Individual And Company is a specialized legal document designed for use in Saudi Arabia where a company extends financing to an individual borrower under Sharia-compliant terms. This agreement is essential for companies engaging in direct lending activities within Saudi Arabia, requiring careful structuring to comply with both Islamic finance principles and Saudi regulatory requirements. The document addresses key aspects including the loan amount, profit structure (avoiding conventional interest), repayment terms, security arrangements, and enforcement mechanisms. It's particularly relevant in situations where traditional bank financing may not be suitable or where direct company-to-individual lending relationships are preferred. The agreement must conform to Saudi Civil Law and the oversight of the Saudi Arabian Monetary Authority (SAMA), while maintaining strict adherence to Islamic finance principles prohibiting riba (interest) and gharar (excessive uncertainty).

1. Parties: Identification of the lender (company) and borrower (individual) with full legal names and addresses

2. Background: Context of the loan arrangement and purpose, confirming Sharia compliance

3. Definitions: Key terms used throughout the agreement, including Islamic finance terminology

4. Loan Amount and Purpose: Specification of the principal amount and permitted use of funds

5. Islamic Finance Structure: Details of the Sharia-compliant financing structure (e.g., Murabaha, Ijara) and profit calculation method

6. Disbursement: Conditions and process for releasing the loan amount

7. Repayment Terms: Payment schedule, method, and currency of repayment

8. Representations and Warranties: Statements of fact by both parties regarding their capacity and authority

9. Borrower's Covenants: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Remedies: Rights and actions available to the lender in case of default

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution process

14. Entire Agreement: Integration clause and relationship to other documents