In securing personal loans from family members or friends,the loan agreement should be verbal or just consist of a "gentleman's understanding."

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While verbal agreements or "gentleman's understandings" may be sufficient in some casual situations, it is recommended to have a written loan agreement in order to avoid misunderstandings or disputes down the line. This written agreement should outline the terms of the loan, such as the amount, interest rate (if any), repayment schedule, and consequences of defaulting on the loan.

In Securing Personal Loans from Family Members or Friends,the Loan