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A loan agreement is a written contract between a borrower and a lender, outlining the terms for repaying borrowed money. It is fundamentally based on the borrower's promise to repay the loan according to a set repayment schedule, which can involve regular payments or a lump sum. Loan agreements are beneficial for lenders as they provide legal enforcement for repayment. Various types of loan agreements exist, including those for business, personal, home equity, car, and student loans. Additionally, there are related documents such as family loan agreements, which govern loans between family members, and IOUs, which are informal agreements acknowledging borrowed money without detailed repayment terms.