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A personal loan agreement is a legal contract between a lender and borrower for lending money, with the lender being a bank, credit entity, or individual. The agreement is legally binding. Personal loans are more flexible than standard loans and can be used for various purposes, as they are not tied to assets like homes or cars. They can be unsecured or require collateral. Important components of a personal loan agreement include names, addresses, signatures of both parties, the state of execution, contract date, total loan amount, and specifics of repayment terms.
