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A loan agreement is a written contract between a borrower and a lender that outlines the terms for repaying borrowed money. It is based on the borrower’s promise to repay the loan according to a specified schedule, either through regular payments or a lump sum. Loan agreements are beneficial for lenders as they legally enforce repayment. Various types of loan agreements cover different situations, including business, personal, home equity, car, and student loans. Additional forms include family loan agreements for borrowing among relatives and IOUs, which are simple acknowledgments of borrowed money without detailed repayment terms or interest rates.