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A personal loan agreement is a legal contract between a lender and borrower for lending money. It can be with a bank, credit entity, or individual. It is legally binding. Personal loans are more flexible than standard loans and can be used for various purposes, not tied to assets like a home or car. Sometimes collateral is required, and it should be stated in the contract. Key elements in a personal loan include names, addresses, signatures of both parties, state of execution, date, total loan amount.