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A personal loan agreement is a legal contract between a lender and a borrower for lending money, which can involve banks, credit entities, or individuals. It is a binding contract. Unlike a standard loan, which specifies fund usage (e.g., student loans or mortgages), personal loans offer more flexibility for various uses. They are typically unsecured, though some may require collateral, which should be specified in the contract. Key elements of a personal loan include the names, addresses, and signatures of both parties, the state of execution, the contract date, and the total loan amount.