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A loan agreement is a formal document between a borrower and lender outlining terms for repaying borrowed funds. It is based on the borrower’s promise to repay according to a specified schedule through regular payments or a lump sum. Such agreements are crucial for legally enforcing repayment. Common types of loan agreements include those for business, personal, home equity, car, and student loans. Each variation sets the terms for repayment. Additional agreements include family loan agreements for borrowing money among relatives and IOUs, which are informal acknowledgments of borrowed money without detailed repayment terms or interest rates.