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A personal loan agreement is a legal contract between a lender and a borrower for lending money, which can involve banks, credit entities, or individuals. This contract is legally binding. Unlike standard loans, which dictate how funds must be used, personal loans offer flexibility for various purposes 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 contract date, and the total loan amount.
