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A personal loan agreement is a legal contract between a lender and a borrower for lending money, which can be a bank, credit entity, or individual. The contract is legally binding under any circumstance. Personal loans are more flexible than standard loans, allowing the borrower to use the funds for various purposes. Unlike standard loans, personal loans are unsecured, although collateral may sometimes be required. A personal loan agreement must include the names, addresses, and signatures of both parties, the loan amount, the state of execution, the date of the contract, and repayment terms if any.
