What It Covers
Loan amount and repayment schedule — clear terms both parties agree to
Interest terms — if any, at what rate, how calculated
Late fee policy — what happens if payments are missed
Collateral details — if the loan is secured by any assets
Signatures — both parties sign for legal enforceability
Why write an IOU?
Money between friends gets awkward fast. A written IOU protects both people — the lender has proof of the loan, the borrower knows exactly what's expected. It's not about distrust — it's about clarity.