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This Simple Loan Agreement With Collateral is designed for use in Saudi Arabia where secured financing needs to comply with both civil law and Sharia principles. The document is typically used when a lender provides financing against specific collateral, whether movable assets or real estate. It includes essential provisions for loan amount, profit calculation (avoiding conventional interest), payment schedules, collateral description and maintenance, enforcement mechanisms, and default remedies. The agreement ensures compliance with Saudi Arabian Monetary Authority (SAMA) regulations and the Commercial Pledge Law or Real Estate Mortgage Law, depending on the type of collateral. This template is particularly useful for banks, financial institutions, and private lenders operating in Saudi Arabia who need a standardized yet customizable document for secured lending transactions.

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the loan arrangement and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the agreement including 'Collateral', 'Event of Default', 'Loan Amount', and 'Profit Rate'

4. Loan Terms: Principal amount, profit rate (instead of interest), payment schedule, and term of the loan

5. Collateral Arrangement: Description of the security being provided, creation of security interest, and maintenance obligations

6. Representations and Warranties: Standard declarations by the Borrower regarding legal capacity, ownership of collateral, and absence of conflicts

7. Covenants: Ongoing obligations of the Borrower including maintenance of collateral and compliance with laws

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

9. Enforcement Rights: Lender's rights regarding the collateral upon default, compliant with Saudi law

10. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution