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A personal loan agreement is a legal contract between a lender and a borrower for lending money. Lenders can be banks, credit entities, or individuals, and the contract is legally binding. Unlike standard loans, which specify how funds must be used (e.g., student loans, mortgages), personal loans are more flexible. They can be unsecured, meaning they aren't tied to assets, though some may require collateral, which should be specified in the contract. Essential elements of a personal loan include the names and addresses of the borrower and lender, their signatures, the state of execution, the contract date, and the total loan amount.
