IOU Sample

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Loan Letters
.docx (0.03 MB)

Lending money between friends can be a delicate matter. Therefore it's best to make an IOU that documents the existence of a debt.

How to write an IOU?

An IOU is a document that is based on the phonetic acronym of the words "I owe you,". Often it's considered as an informal written agreement rather than a legally binding commitment. If you are on either end of a loan, you should consider creating an IOU to use as a part of the loan transaction. Before doing so, you may want to find out more information about what an IOU is and what it can do for you. This sample IOU template is easy to use when people borrow money from you. The IOU should clearly set out the repayment schedule so that there is no question as to how and when the borrower must repay the principal amount of the loan and interest (if applicable) to the lender. The most common types of repayment options are lump sum payments, installment payments and "due on demand" payments.

An IOU is useful to avoid later possible misunderstandings. The following is covered in this IOU:

  • Principal sum that is borrowed
  • Terms 
  • Payment
  • Repayment schedule
  • Interest
  • Security
  • Prepayment
  • Costs and Fees
  • Waiver
  • Successors and Assigns
  • Joint and Several Liability
  • Amendment
  • Severability
  • Notifications
  • Governing Law

Using our ready to use IOU and easy to modify brings you an extra motivation and inspiration, and gives you more time to focus on important subjects in your personalized file. It is not a substitute for information about the local laws and standards of practice that apply to the specific situation that it’s used for. 

We support you by providing this loan IOU agreement template. Download this sample IOU Agreement template between borrower and lender!

The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained this site constitutes a solicitation, recommendation, endorsement, or offer by Bizzlibrary or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.


Kazuko Carpenter(3/8/2022) - GBR

Respect for this document

Coral Escobar(3/8/2022) - DEU

Can I donate somewhere, it's very helpful what you did

Domenica Velasquez(3/8/2022) - AUS

Thank you for the letter!!

Marquita Guerrero(3/8/2022) - AUS

Thank you!!

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