Promissory Note
A written promise to repay a loan, including the amount, interest, and payment schedule.
Opens a fillable version in your browser. Free, no account, and free to download. This is a helper, not the official form.
About Promissory Note
A Promissory Note is a written promise by a borrower to repay a specific sum of money to a lender under agreed terms. It records the loan amount, interest rate, repayment schedule, and what happens if payments are missed, which helps protect both parties.
This general template works for personal loans, family loans, and simple business lending. It lets you set the note as payable in installments or as a lump sum, and you can choose whether it is secured by collateral. It is not legal advice.
State law sets limits on interest rates, called usury limits, and may require certain disclosures for consumer loans. Larger or secured loans sometimes call for additional documents. Confirm your state rules on maximum interest and enforceability before finalizing the note.
Who needs to complete it
- People lending money to family or friends who want it documented
- Small business owners making or receiving a loan
- Private lenders formalizing repayment terms
- Borrowers who want clear, written loan terms
- Anyone who wants a record of a loan and repayment schedule
How to fill out Promissory Note
- 1Enter the lender and borrower names and addresses.
- 2State the principal amount of the loan.
- 3Set the interest rate, or note that the loan is interest free.
- 4Choose the repayment schedule, whether installments or a lump sum, and the dates.
- 5Describe any collateral if the note is secured.
- 6Add terms for late payments, default, and any prepayment options.
- 7Have the borrower sign and date the note, and add a witness if desired.
- 8Give each party a copy and keep the signed original in a safe place.
Ask AI about this form
Get plain-language help understanding Promissory Note. General guidance only, not legal or tax advice.
Frequently asked questions
What is the difference between a secured and unsecured promissory note?
A secured note is backed by collateral the lender can claim if the borrower defaults, while an unsecured note relies only on the borrower's promise. Secured notes give the lender more protection.
How much interest can I charge?
States set maximum interest rates through usury laws, and charging above the limit can make the note unenforceable. Check your state cap before setting a rate.
Does a promissory note need to be notarized?
Notarization is not always required, but it can make the note easier to enforce and harder to dispute. Some lenders also add a witness signature.
Is this template enforceable in my state?
This is a general template, not legal advice, and rules on interest limits and disclosures vary by state. Please confirm the requirements that apply where you live before relying on it.