An Iowa promissory note is a written promise to repay borrowed money, and Iowa Code § 535.2 governs the interest it can charge.[1.3] The note names the lender and the borrower, the amount, the interest rate and when payments are due. This free Iowa promissory note template is a fillable PDF with 28 fields. Fill it out online, then download and print it for both parties to sign.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Iowa law. If you notice an error or outdated information, please contact us.
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A promissory note is either secured or unsecured. A secured note identifies collateral, meaning property the borrower forfeits if the repayment obligation is not satisfied, while a note with no collateral is unsecured. Unsecured notes are common when the parties already know and trust each other. This form is one of our legal forms for a personal loan or a business loan between two parties.
Most promissory notes in practice include:
If you need one of our legal forms that is not specific to Iowa, start from our blank promissory note template.
Iowa Code § 535.2 sets the interest rates for money loaned. Unless the lender and borrower agree in writing on another rate, the legal rate is five cents on the hundred by the year, or 5 percent a year. A rate agreed in writing can be different, but it cannot exceed the maximum rate that subsection 3 of the statute permits.[1.1]
The maximum rate changes every month. The statute says:
On or before the twentieth day of each month the superintendent of banking shall determine the maximum lawful rate of interest for the following calendar month as prescribed herein, and shall cause this rate to be published, as a notice in the iowa administrative bulletin or as a legal notice in a newspaper of general circulation published in polk county, prior to the first day of the following calendar month.
In plain terms, the superintendent of banking establishes the maximum lawful rate for the following month and publishes that rate before the month begins. Borrowers and lenders should look up the published rate for the month in which they sign.[1.4]
Do not mix up the two rates. Five percent is the legal rate when no other rate is agreed. It is not the ceiling for a rate you agree on in writing. That ceiling is the monthly maximum the superintendent of banking determines.[1.1]
A note can say that interest is owed and still name no rate. If there is a contract to pay interest and no rate is stipulated, the rate on money due, or to become due, is five cents on the hundred by the year.[1.2]
Section 535.2 also adds these rules.[1.3]
Because the maximum rate changes every month, consider asking an attorney to review any note for a large loan, particularly one that will be repaid over several years. Reviewing the rate and the repayment terms together helps both parties avoid disputes about the agreement.
| Document Name | Iowa Promissory Note Form |
| Other Name | IA Promissory Note |
| Interest Rate | 5% a year when no other rate is agreed. A written agreement can set another rate, up to the monthly maximum the superintendent of banking determines.[1.1] |
| Relevant Laws | Iowa Code, Section 535.2 |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
A promissory note (sometimes referred to as just note) is a simple money instrument used by many companies and individuals throughout all states as a funds source and an alternative to banks. Find out more about the most common states searched by our visitors in terms of promissory note templates.
To fill out the form, work through six parts in the same order as the PDF, starting with the date and the amount and ending with the two signatures. You can complete the downloaded PDF in our online PDF editor, and then print two copies, one for the borrower and one for the lender.
The screenshots under each step show the FormsPal Iowa promissory note template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Iowa Code § 535.2 answers the interest questions that borrowers and lenders ask most often, including what happens when a note names no rate and whether a cap exists. Two points sum up the answers that follow.
It depends on the maximum lawful rate of interest for the month of the loan. The superintendent of banking determines that rate each month for the following calendar month. The rate is published as a notice in the Iowa administrative bulletin or as a legal notice in a newspaper of general circulation published in Polk County.[1.4] Check the published rate before you agree on 30 percent.
Yes. Under Iowa Code § 535.2(3)(a)(2), the superintendent of banking determines the maximum lawful rate of interest for each following calendar month. The cap is a figure that is set and published month by month.[1.4]
If a contract calls for interest but states no rate, the rate is five cents on the hundred by the year, or 5 percent a year.[1.2]
General information, not legal or tax advice.
