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A personal loan agreement is a legal contract between a lender and a borrower for lending money. It can be with a bank, credit entity, or an individual, and is legally binding. Personal loans are more flexible than standard loans, allowing funds to be used for various purposes. They are often unsecured but may require collateral. A personal loan contract should include names, addresses, signatures, state of execution, contract date, loan amount, repayment terms, interest rate, and any collateral details.