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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. The key element is the borrower’s promise to repay the loan according to a specified schedule, which may involve regular payments or a one-time lump sum. Loan agreements are crucial for lenders, as they provide legal recourse to ensure repayment. Various types of loan agreements exist, including those for business, personal, home equity, car, and student loans. Other related documents include family loan agreements, which govern loans between family members, and IOUs, which acknowledge borrowed amounts without detailed repayment terms or interest rates. Each type aims to establish clear repayment conditions.