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A loan agreement is a written contract between a borrower and a lender outlining the terms for the repayment of borrowed money. It is based on the borrower’s promise to repay the loan according to a specified schedule, either through regular payments or a lump sum. This agreement is legally binding, ensuring the borrower repays the loan. Different types of loan agreements include those for business, personal, home equity, car, and student loans. Variations exist, such as family loan agreements, which involve borrowing money from family members, and IOUs, simple acknowledgments of borrowed funds without detailed repayment terms or interest rates.