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In this video tutorial, the process of creating a personal loan agreement is demonstrated. The agreement can be written in Adobe PDF, Microsoft Word, or rich text format, with Adobe PDF being the easiest option. The form is fillable, with placeholders for the borrower's and lender's information, the loan amount, and the repayment terms. In this example, the borrower is Johnny Appleseed lending money to his wife Nancy Appleseed, with a repayment period and amount specified. The details of the loan are then outlined in the agreement.