Promissory note template

What a promissory note needs to include

A promissory note turns a loan between two people into a written record both sides can point to later. It does not need heavy legal wording. It needs to answer a short list of plain questions: who is lending, who is borrowing, how much, at what interest, and by when it must be paid back. Every section in the template below covers one of those questions.

• The parties. The full legal names and addresses of the lender and the borrower.
• The principal. The exact amount of money being lent.
• The interest rate. The annual rate, if any, and how it is calculated.
• The repayment schedule. Whether it is paid in full on one date or in regular installments.
• Late payment terms. Any fee or added interest if a payment is missed.
• Prepayment. Whether the borrower may pay early without penalty.
• Default. What happens if the borrower stops paying.
• Signatures. A dated signature from the borrower, and often the lender too.

This is a general template, not legal advice. Some regions cap how much interest a private loan may charge, and larger loans can have extra rules. For a big amount or an unusual arrangement, have a lawyer review the note before anyone signs.

Free promissory note template you can copy

Copy the text below as your starting point, or open it in the fill tool and type your details straight onto the page. Every blank line is a field you complete.

PROMISSORY NOTE

Date: ____________________
Principal amount: $ ____________________

BORROWER (the "Borrower")
  Name: _____________________________________
  Address: __________________________________

LENDER (the "Lender")
  Name: _____________________________________
  Address: __________________________________

1. PROMISE TO PAY
   For value received, the Borrower promises to pay the Lender the
   principal sum of $ ______________, plus interest as set out below.

2. INTEREST
   Interest is charged at ______ % per year on the unpaid balance.
   [ ] No interest is charged on this loan.

3. REPAYMENT
   [ ] The full amount is due on ____________________ [date].
   [ ] The loan is repaid in installments of $ __________
       every [ ] week  [ ] month, starting ____________,
       until the balance and interest are paid in full.

4. LATE PAYMENT
   A payment more than ______ days late may be charged a fee of
   $ __________ or ______ % of the overdue amount.

5. PREPAYMENT
   The Borrower [ ] may  [ ] may not repay early, in whole or in part,
   without a penalty.

6. DEFAULT
   If the Borrower misses a payment by ______ days, the full unpaid
   balance and interest may become due at once.

7. GOVERNING LAW
   This note is governed by the laws of ____________________.

SIGNATURES

Borrower: __________________   Date: ____________
Print name: ________________

Lender: ____________________   Date: ____________
Print name: ________________

How to fill out the promissory note template

1. Open the template in the fill tool. Copy the text above, or load it into the fill a PDF tool and type your details directly onto the page.
2. Name both parties. Enter the full legal names and addresses of the lender and the borrower. Use exact legal names, not nicknames.
3. Set the principal. Write the loan amount as a number, and for a large sum write it in words too so it cannot be misread.
4. Enter the interest rate. Add the annual rate, or tick the no-interest box if the loan is interest free. Check the legal limit in your region first.
5. Choose the repayment schedule. Tick a single due date, or set the installment amount and how often it is paid, plus the start date.
6. Complete the remaining terms. Fill in the late fee, whether early repayment is allowed, and the number of days before a missed payment counts as default.
7. Sign and date. The borrower signs and dates the note, and the lender may sign too. Draw, type, or upload a signature with the sign a PDF tool.
8. Download a clean PDF. Click download. Your entries are flattened into the page so they cannot be easily changed, and there is no watermark.

Secured versus unsecured notes

A promissory note can be unsecured or secured, and the difference matters if repayment goes wrong. An unsecured note is a plain promise to pay, backed only by the borrower's word and the written terms. A secured note ties the loan to something of value, such as a car or a piece of equipment, which the lender can claim if the borrower defaults. Most small loans between friends or family are unsecured, and the template above fits that case. If you are lending a large amount and want the loan tied to property, add a short clause naming the item and stating that it secures the note, and consider having a lawyer draft that part so it holds up.

Setting a fair interest rate

Interest is where private loans most often run into trouble, so set the rate on purpose. Decide whether the loan carries interest at all, since many family loans do not. If it does, pick an annual rate and state it clearly, then check that it sits under the legal ceiling for your region, because some places cap the rate a private lender may charge and going over it can void the interest or worse. Keep the math simple by charging interest on the unpaid balance, and write the rate as a yearly figure so there is no confusion about whether it is monthly or annual. A clear, lawful rate protects both sides.

Choosing a repayment schedule that works

The repayment schedule is the heart of the note. A single due date suits a short loan that will be paid back in one go, such as covering a bill until payday. Installments suit a larger loan that is easier to repay in regular pieces, and they give the borrower a steady target. Whichever you choose, write the exact amounts and dates so nobody has to guess. If you pick installments, state how often they fall due and when the first one starts, and make the final payment clear so both sides know when the loan is finished. A schedule that is written plainly is one that gets followed.

Tips for a promissory note that holds up

• Write dates in full. Use complete dates such as August 12, 2026, so no due date is read two ways.
• Spell out the amount. Write the principal in numbers and, for large sums, in words too.
• Check the interest limit. Confirm your rate is under the legal cap where the loan is made.
• Keep a signed copy each. The lender and borrower should hold the same signed PDF.
• Record every payment. Keep a simple log of what was paid and when, stored with the note.

One more habit is worth building: agree on how payments will be made before anyone signs, whether by transfer, cheque, or cash with a receipt. A note that names the method and keeps a payment log leaves far less room for a later argument about what was actually repaid.

When you need a promissory note

Any time real money changes hands as a loan, a written note is worth the few minutes it takes. Lending to a friend, helping family with a down payment, or advancing money to a small business are all cases where a spoken promise can turn into a dispute once memories drift. A signed note protects the friendship as much as the money, because both sides agreed to the same terms in writing. If the borrower is uneasy about signing anything at all, treat that as useful information about how the loan might be repaid.

A note also helps at tax time and in your own records. If you charge interest, that interest may count as income you need to report, and a written note gives you the figures to do it. If the loan is ever forgiven, the note shows what was owed and when the arrangement changed. Even for a small amount, a one-page note keeps a friendly loan from turning into a foggy memory that neither side can pin down a year later.

When your note is ready, open the fill tool, type in your details, and download a clean PDF you can sign and share today. You can also browse other document templates if you need a matching bill of sale or agreement. Because everything runs in your browser, a loan with private terms stays on your own device.