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A personal loan agreement is a legal contract between a lender and a borrower for lending money, which can be a bank, credit entity, or individual. This contract is binding and differs from standard loans, which dictate how funds must be used (e.g., student loans, mortgages). Personal loans offer more flexibility, allowing for a variety of uses, and are often unsecured, though some may require collateral. Key elements of a personal loan contract include the names, addresses, and signatures of both parties, the state of execution, the date, and the total loan amount.
