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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 schedule, either through regular installments or a lump sum. Loan agreements serve as legal documents to ensure repayment. They are applicable in various contexts, including personal loans, business loans, home equity, car loans, and student loans. Variations exist, such as family loan agreements for intra-family lending and IOUs, which are simple acknowledgments of borrowed funds without detailed repayment terms or interest rates. Each type of agreement establishes the conditions for repayment.