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A personal loan agreement is a legal contract between a lender and a borrower, whether it be a bank, credit entity, or individual, that is legally binding. Personal loans are more flexible than standard loans and can be used for various purposes. They are often unsecured but may require collateral. Important elements of a personal loan agreement include names, addresses, signatures, state, date, loan amount, repayment terms, interest rate, and any collateral details.
