According to general experience, a loan agreement is legal and valid as long as it includes the lender, borrower, loan amount, loan time and other main contents. A standard IOU should contain the following contents:

1. Write clearly the full legal names of the borrower and the lender.

2. Write the loan amount clearly, including the amount in uppercase and lowercase letters.

3. Write down the loan time period clearly, including the start and end date of the loan and the clear loan period.

4. Write clearly the interest on the loan. There should be a clear annual interest rate or monthly interest rate, and the total amount of loan interest that should be paid in the end.

5. The year, month, day, time and method of payment for the repayment of the principal and interest of the loan should be clearly stated.

6. There should be a signature, seal, fingerprint or handwriting of the borrower.

When writing an "IOU", you should pay attention to several issues:

Be clear about the real names of the borrower and the lender (whichever is registered in the ID card and household register), Find out the borrower's job, address, and even income, property and other personal circumstances. The borrower shall sign his or her real name in the lower right corner of the "IOU".

Signing is equivalent to confirming the content stated in the "Loan Agreement". Without a signature, it means there is no confirmation. If the borrower does not agree with it later, there is no signature or a false name will probably not be supported by the court. "The loan agreement" should preferably stipulate interest, repayment period, repayment method and other matters; the "loan agreement" must clearly describe the facts of the loan.

2. The loan agreement has legal effect

If the loan agreement is relatively detailed and signed with normal intelligence and sanity, the legal effect is equivalent to a loan contract.

But according to " Article 52 of the Contract Law of the People's Republic of China shall be invalid if any of the following circumstances occurs: (1) One party concludes the contract by means of fraud or coercion, harming national interests; (4) harming social welfare. *Interests; (5) Violation of mandatory provisions of laws and administrative regulations

Article 56 An invalid contract or a canceled contract has no legal binding force from the beginning and does not affect other aspects. If it is partially valid, the other parts are still valid.

As long as it is signed by both parties (preferably the content is also written by the borrower), and the content does not violate legal provisions (such as loan sharking, etc.), it is valid. Legally valid. Pay attention to the basic content.

1. (Who is the creditor and who is the debtor must be clearly stated)

2. The IOU must be true to the parties involved. Expression of intention (no coercion, fraud, etc.)

3. The party concerned has the capacity for civil liability. He is a person with full capacity for civil conduct. (IOUs signed by idiots, mentally ill persons, minors, etc. are invalid)

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4. Legitimate reasons for borrowing. (Gambling loans are not supported by law)

5. If there is a repayment date or a statute of limitations date for the IOU, it must be within the statute of limitations. Support

6. The participation of a third party is not a necessary condition for the establishment of the IOU. It is okay without a third party.

7. If the IOU is also stamped with a fingerprint, then it is even more important.

So based on the above, everyone needs to know, is the loan agreement legally binding? The answer is yes. In the process of borrowing money, it is necessary to sign a loan agreement that complies with the legal provisions. The loan relationship, amount, interest regulations, repayment time limit, etc., and the use of reasonable means to protect the legitimate rights and interests of the borrower can well avoid disputes in the later stages of money lending.

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