IOU maker

Lending money to someone? Put it in writing, kindly and clearly.

An IOU is a short written note in which a borrower acknowledges that they owe money to a lender. It keeps friendships and small business deals clear, because nobody has to rely on memory.

Why use it

Both sides agree the amount and repayment plan up front, so there is less room for awkward arguments later.
The amount appears in figures and in words, which makes it much harder to alter.
A dated, signed note with a witness is a far better record than a chat message or a handshake.

How it works

Enter the lender, the borrower, the amount and the currency.
Add what the money is for and when it will be repaid, in one go or in instalments.
Add interest only if you have both agreed it, plus the place and an optional witness.
Download, print two copies, and have both of you sign. Each keeps one.

Good to know

IOU is simply "I owe you" said out loud: three letters that sound like three words.
Writing the amount in words as well as figures is the same trick cheques use, because a figure is easy to alter and a written amount is not.

Questions

Is an IOU legally binding?

An IOU is evidence that a debt exists, but whether it can be enforced, and how, depends on your country and the circumstances. It does not replace a loan agreement.

What is the difference between an IOU and a loan agreement?

An IOU simply acknowledges a debt. A loan agreement sets out the full terms: interest, repayment, what happens if payments are missed, and security. For larger sums, a loan agreement drafted by a lawyer is wiser.

Do we need a witness?

It is optional, but a witness who saw both of you sign gives the note more weight if there is a disagreement later.

Is my information saved?

Only on your own device. Nothing you type, including names and amounts, is sent to us.

Please note

Provided free, as is, for general use. It is not legal or financial advice, and it is not a loan agreement. Whether an IOU is valid or enforceable, and any limits on interest, depend on the law where you are. For larger sums or anything complicated, ask a qualified lawyer to draft a proper agreement. You are responsible for what you enter and sign. Do not use this tool to create false or misleading documents.