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The tutorial demonstrates how to create a personal loan agreement using docHub PDF, which is chosen for its ease of use. Users start by filling out a form where they input the effective date of the agreement, specify the borrower (Johnny Appleseed) and his address (123 Apple Way, Appleville, Texas 12345), and identify the lender (Nancy Appleseed). The borrower promises to repay the loan within a year, with the loan amount set at $10,000. The process highlights filling in the necessary details in the respective fields of the agreement.