Promissory note template
A promissory note is a borrower’s written promise to repay a loan: how much, at what interest rate and on what schedule. Fill in the details below and it is laid out as a PDF with signature blocks for the borrower and the lender, ready to download or to send for signature.
This template is a general starting point, not legal advice. Laws differ between countries and states, so have it checked before signing anything important.
Fill in the details
Anything you leave empty becomes a blank line in the document, to fill in by hand or during signing.
Opens the signature request with this document and a signature box for each party already placed.
Preview
Promissory Note
On __________, for value received, __________, of __________ ("Borrower"), promises to pay __________, of __________ ("Lender"), the principal sum of __________, together with interest as set out in this Promissory Note (the "Note").
1. Interest
Interest accrues on the unpaid principal from the date of this Note at __________. Interest will never be charged above the highest rate the law allows; any amount paid above that rate will be applied to the principal or refunded to Borrower.
2. Repayment
Borrower will repay the loan as follows: __________. All remaining principal and interest is due no later than __________.
Payments are made __________. Each payment is applied first to any late charges, then to accrued interest, and then to principal.
3. Prepayment
Borrower may repay all or part of the loan early at any time without penalty. An early payment reduces the principal and does not postpone the next scheduled payment.
4. Late Payments
Borrower will pay a late charge of __________, to the extent the law allows.
5. Default
Borrower is in default if a payment remains unpaid thirty (30) days after its due date, or if Borrower becomes insolvent or files for bankruptcy. If Borrower is in default, Lender may declare the entire unpaid principal and accrued interest immediately due by giving Borrower written notice.
If Lender takes legal action to collect amounts due under this Note, Borrower will pay Lender’s reasonable costs of collection, including reasonable attorney’s fees, to the extent the law allows.
6. Security
This Note is not secured by any collateral.
7. General
If Lender delays or does not exercise a right under this Note, Lender does not give up that right. Borrower waives presentment, demand for payment and notice of dishonor, to the extent the law allows. Lender may transfer this Note; Borrower may not transfer its obligations without Lender’s written consent.
This Note is governed by __________. If any part of it cannot be enforced, the rest stays in effect. It may only be changed in writing signed by Borrower and Lender. Lender signs below to confirm the terms of the loan.
Borrower
__________
Lender
__________
When a promissory note fits
Use a promissory note for a straightforward loan — between family members or friends, or between a business and its owner — with a fixed amount, an interest rate and a repayment schedule. A loan secured by a home or a vehicle needs a separate mortgage or security agreement, and lending money as a business is regulated.
Getting the numbers right
A note that does not add up invites an argument about what was really agreed.
- State the interest rate as a yearly rate and say how it is calculated.
- Make the schedule work: the payments should repay the principal and interest by the final due date.
- Check your state’s maximum interest rate. Usury limits vary widely, and some states also cap late charges.
- In the United States, a family loan that charges less than the IRS applicable federal rate can have tax consequences for larger amounts; ask a tax adviser.
Frequently asked questions
Document templates
All templates- Mutual non-disclosure agreement (NDA) templateA plain-English mutual NDA for two parties who share confidential information. Fill in the details, then download the PDF or send it for signature.
- Residential lease agreement templateA plain-English lease for renting a house or apartment for a fixed term. Fill in the rent, deposit and rules, then download it or send it for signature.
- Bill of sale templateA general bill of sale for a car, boat, equipment or other personal property. Fill in the item, price and condition, then download it or send it for signature.
- Independent contractor agreement templateAn independent contractor agreement covering the work, payment, taxes, confidentiality and ownership of results. Fill it in and send it for signature.
- Freelance services agreement templateA clear freelance contract covering the work, fees, payment, ownership of the results and how either side can end it. Fill it in and send it for signature.
- Employment agreement templateAn at-will employment agreement covering the role, pay, hours, benefits, confidentiality and ownership of work. Fill it in and send it for signature.
- Job offer letter templateA professional job offer letter with the role, start date, pay, hours, benefits and conditions. Fill in the details and send it to the candidate to sign.
- Release of liability waiver templateA liability waiver for activities, classes and events, with assumption of risk and medical consent sections. Fill it in and send it for signature.
- Photo release form templateA photo and model release giving permission to use a person’s photos and video, with clear limits on where and for how long. Fill it in and send it to sign.
- Partnership agreement templateA general partnership agreement for two partners: contributions, profit split, decisions and what happens if a partner leaves. Fill it in and send it to sign.
- Letter of intent (LOI) templateA non-binding letter of intent for a business deal, with binding confidentiality and exclusivity terms. Fill in the deal terms and send it for signature.
- Memorandum of understanding (MOU) templateA memorandum of understanding for two organizations working together: shared goal, roles, costs and how to end it. Fill it in and send it for signature.