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The Education Loan Agreement is essential for financial institutions operating in Saudi Arabia that provide educational financing services. This document is specifically designed to comply with both Saudi Arabian banking regulations and Sharia law principles, making it suitable for use in the Saudi Arabian market. The agreement covers crucial aspects including loan amount, purpose, disbursement terms, repayment schedule, and academic requirements, while ensuring all financial terms are structured in a Sharia-compliant manner. It is typically used when a student requires financing for educational purposes, whether for domestic or international studies, and includes necessary provisions for both the financial institution's security and the student's consumer protection. The document incorporates specific requirements from the Saudi Arabian Monetary Authority (SAMA) and relevant education authorities, making it a comprehensive framework for educational financing relationships.

1. Parties: Identification of the lender (financial institution) and borrower (student), including full legal names and contact details

2. Background: Context of the agreement, including the purpose of the educational loan and its Sharia-compliant nature

3. Definitions: Key terms used throughout the agreement, including educational, financial, and Sharia-specific terminology

4. Loan Amount and Purpose: Specification of the total financing amount and its exclusive use for educational purposes

5. Sharia Structure: Details of the Islamic financing structure being used (e.g., Murabaha, Ijara) to ensure compliance with Islamic principles

6. Disbursement Terms: Conditions and schedule for releasing funds, including direct payments to educational institutions

7. Repayment Terms: Schedule, method, and conditions of repayment, structured in accordance with Sharia principles

8. Educational Requirements: Conditions related to academic performance, enrollment status, and approved educational programs

9. Security and Guarantees: Required guarantees, collateral, or third-party guarantors

10. Representations and Warranties: Statements of fact and promises made by both parties

11. Events of Default: Circumstances constituting default and consequences thereof

12. Termination: Conditions and procedures for early termination or completion of the agreement

13. Governing Law and Jurisdiction: Application of Saudi law and specification of dispute resolution mechanisms