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A loan agreement is a written contract between a borrower and lender that outlines the terms for repaying borrowed money. It is based on the borrower’s promise to repay the loan according to an agreed-upon schedule, which can involve regular payments or a lump sum. Loan agreements serve as legal enforcement for repayment. They are applicable for various situations, including business, personal, home equity, car, and student loans. Different types of loan agreements exist, including family loan agreements, which facilitate borrowing between family members, and IOUs, which are simple forms acknowledging borrowed money without detailed repayment terms or interest rates.