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A loan agreement is a written contract between a borrower and lender outlining terms for repayment of borrowed money. It is based on the borrower's promise to repay according to a specified schedule, either through regular payments or a lump sum. Loan agreements are essential for lenders as they provide legal grounds for repayment. Various types exist, including normal loan agreements applicable to business, personal, home equity, car, and student loans. Other agreements include family loan agreements for intra-family lending and IOUs, which confirm borrowed funds but typically lack detailed repayment terms or interest rates. Each type serves to formalize the repayment conditions for money owed.