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A loan agreement is a written contract between a borrower and lender outlining terms for repaying borrowed money. The borrower promises to repay the loan according to an agreed schedule, either with regular payments or a lump sum. Different types of loan agreements, such as business, personal, home equity, car, and student loans, serve various purposes. These agreements set up repayment terms for money owed and can include family loan agreements and IOUs. Family loan agreements involve borrowing from a family member, while an IOU is a simple form confirming borrowed money without specific details on repayment.
