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The tutorial demonstrates how to create a personal loan agreement using a downloadable form, choosing the DocHub PDF format for convenience. Users start by entering the effective date of the agreement, and then proceed to fill in the borrower's details, illustrated with an example involving Johnny Appleseed borrowing from his wife Nancy. The borrower promises to pay back the loan amount of $10,000 within a specified timeframe of one year. The video emphasizes the fillable nature of the form, guiding users to click on blank fields to input required information. Additional details about the loan are entered as needed.