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A Letter to Borrow Money from a Friend is a crucial document used when seeking to formalize a personal loan arrangement in the UAE. This document type bridges the gap between informal lending and legal protection, providing a clear record of the transaction while maintaining the personal nature of the arrangement. It must comply with UAE civil law and Islamic finance principles, particularly avoiding interest charges. The letter should be used whenever borrowing money from a friend to ensure both parties have clear documentation of the arrangement, protecting their rights and obligations. It typically includes the loan amount, purpose, repayment terms, and acknowledgment of the debt, while remaining compliant with UAE legal requirements. This document is particularly important in the UAE context where personal lending must balance traditional friendships with legal formalities and religious considerations.

1. Date and Location: Clear statement of when and where the letter is written

2. Recipient Details: Full name and address of the friend lending the money

3. Formal Request: Clear statement of the loan amount being requested

4. Purpose of Loan: Explanation of why the money is needed

5. Loan Terms: Amount, repayment schedule, and method of repayment

6. Islamic Finance Compliance: Statement confirming the loan is interest-free in compliance with Sharia principles

7. Repayment Commitment: Clear promise to repay with specific timeline

8. Acknowledgment: Statement acknowledging the serious nature of the financial obligation

9. Signature Block: Space for both parties to sign and date the letter