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The tutorial explains how to create a personal loan agreement using DocHub PDF. To begin, users can choose their preferred format before filling out the agreement. The video demonstrates entering the agreement's effective date—May 24, 2015—and specifies the borrower, Johnny Appleseed, and the lender, his wife Nancy, both residing at the same address (123 Apple Way, Appleville, Texas 12345). The loan amount is set at $10,000, with a repayment timeline of one year. Users are guided to fill in the necessary details throughout the form, indicating the specifics of the loan agreement.