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A personal loan agreement is a legally binding contract between a lender and a borrower, with the lender being a bank, credit entity, or an individual. Personal loans offer more flexibility than standard loans as they can be used for various purposes and are often unsecured. However, collateral may be required in some cases, which should be specified in the contract. Key elements in a personal loan agreement include names, addresses, signatures of both parties, state, date of contract, total loan amount, terms of repayment, and any applicable interest rates or fees.
