Fill Out Legal Iowa Promissory Notes Forms For Free

A promissory note is generally sufficient if the amount of money is relatively small and there is a great deal of trust between the lender and the borrower (or debtor). In contrast, a loan agreement is more appropriate if the two parties do not know one another well and have substantial debt.

Promissory notes are quite simple and can be prepared by anyone. They do not need to be prepared by a lawyer or be notarized. It isn't even particularly significant whether a promissory note is handwritten or typed and printed.

Promissory notes are used to legitimize the agreement between the lender and the borrower in the eyes of the law. No promissory note may mean the loan contract isn't legally binding or enforceable.

However, using a lawyer is not necessary for the loan to be valid. Once you draft the promissory note, it's time for everyone to sign it: the lender, the borrower and the co-signer (if there is one). Again, seeking professional help such as notarizing the signatures is a good idea but not required.

A personal loan agreement is a legally binding contract that defines the expectations for both a borrower and a lender. It can be drawn up with an official lender, like a bank or credit union, or used in a more informal situation, such as with a friend who's lending you an amount of money.

You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.