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Free Download IOU Template

  • Simple IOU Template
  • IOU Letter Template
  • IOU Form Template

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IOU Template

What is IOU
IOU is an informal document that acknowledges a debt owed. The creditor lends money to the debtor expecting it to be paid back after a certain period of time. IOU does not have any interest that is due as a fine if the debt is not paid back. The lender just needs to bring the IOU document to the court and they will immediately obtain a decision against the borrower. You can use an IOU Form to borrow money, with or without interest. The debt owed to the borrower does not necessarily involve money but it can also involve other products like land, equipment, etc. If the borrower fails to repay the debt he can present this document before the court. The court then decides on the further process to be undertaken to assist the lender recover his money or product.
What is IOU format?

1. Full Names of Lender and Borrower: The borrower acknowledges the lender by mentioning both their names in the IOU document.

2. Borrowed Amount: Detailed information regarding the money or product borrowed, along with any associated charges and interest for registering the IOU.

3. Due Date for Repayment: An IOU template should clearly specify the date by which the borrowed money must be repaid.

4. Payment Method: The document should outline how the borrower intends to repay the IOU, including options for partial or full payments. If partial payments are accepted, the frequency of such payments should be specified.

5. Date of Document Signing: The date, month, and year when the document is signed by both the borrower and the lender.

6. Witness Information: Some IOU documents include a section for the details of a witness who attests to the signing of the agreement.

7. Signature Space for Debtor: At the conclusion of the document, there should be a blank space provided for the debtor to sign, indicating their agreement to the terms outlined in the IOU.

How to Write a IOU Letter?

Wrting an IOU letter can help you meet your financial needs so it is important to know how to make an IOU form. It is not as difficult as it seems, the following steps below will help you creating a good IOU document for your use.

1. Find and read some IOU templates from the internet and use them as a reference to create a simple iou form. Reading some of these templates will help you enhance your ideas of writing a standard IOU contract.

2. You can use any text editor to create an IOU template, but it is recommended to use Microsoft word since it has a variety of options available.

3. Before you start creating an IOU template you must know it looks like a paragraph. Open Microsoft Word, considering you a borrower, start the first line introducing yourself and acknowledging the lender.

4. On the next line mention the amount or the product you are liable to borrow from the lender. Try to include the date on the same line.

5. Make sure to specify whether you borrowed a product or money. The terms of borrowing money or product can differ and has different aspects to address.

6. Mention your willingness to take responsibility for failure to pay the debt. Include a sentence to mention the probable date of repayment if necessary.

7. You can also include a repayment schedule to determine the interest to the principal per payment. Include as many sentences as you can on the IOU document to clearly state it is binding on any situation. There can a lot of terms created to repay a debt.

8. Place your arguments on displaying the legal document before the court by the debtor. The next line mentions the date, month and year of the event. You can add necessary sentences for the completion of the process if required by the debtor, to address his needs.

9. Minimize styling of the document when creating the IOU since, it is the text that matters and not the design of the document. Styling can go wrong and make the text on the document look blurred.

10. The last part must include the name of a witness if you are willing to call upon. The document finishes with a blank field for the signature of the debtor.

Simple IOU Letter Template


I, the undersigned, Name of Debtor, Identity Number Identity Number of Debtor , with permanent residence on Address of Debtor (hereinafter referred to as the ‘Debtor’) do hereby acknowledge myself to be truly and lawfully indebted to

Name of Creditor, Identity Number Identity Number of Creditor, Address of Debtor (hereinafter referred to as the Creditor)

in the sum of USD 5 million (five million US dollars) together with interest being in respect of 10 per cent annual rate.

SIGNED at Address of Signing.


Name of Witness

_____________________________________ (Signature of Creditor) _____________________________________ (Print Name of Creditor)

_____________________________________ (Signature of Debtor) _____________________________________ (Print Name of Debtor/s)

_____________________________________ (Signature of Witness) _____________________________________ (Print Name of Debtor/s)

Is an IOU Legally Binding?

IOU is not similar to a promissory note which is a formal and legal binding to repay a debt on a specified date. Promissory notes are usually more acceptable to court in reference to the terms and nature of the document.

Even though a witness does not create or break an IOU, it's supportive if you need to go to the court. It will be easy to prove that a verbal agreement took place

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