Business & Finance

Promissory Note Template

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Updated September 02, 2025

A written promise to repay money borrowed within a specified timeframe and interest rate. Defines the principal amount, interest terms, payment schedule, and consequences of default between lender and borrower.

Key Provisions

Promise to Pay

Unconditional written promise to repay principal plus interest.

Maturity & Schedule

Fixed due date with weekly, monthly, or lump-sum payments.

Security & Collateral

Secured or unsecured designation with asset descriptions.

Acceleration & Default

Full balance due on default with defined remedies.

What is your role?

Select your role to customize the promissory note for your needs.

Auto-Usury Compliance Checker

Verify your proposed interest rate against state usury limits before finalizing the note.

Quick Reference

AL: 8%CA: 10%NY: 16%TX: 10%FL: 18%VA: 12%

Repayment Calculator

Calculate total interest owed, total repayment amount, and monthly payment based on your note terms.

Credit Authorization Generator

Generate a Credit Background Check Authorization form for the borrower to sign before disbursement.

Generate Credit Authorization Form

Collateral Valuation Tool

For secured promissory notes: estimate the value of pledged collateral to ensure it covers the loan amount.

Select Collateral Type

Automated Demand Letter

For lenders dealing with late payments. If a payment is 30+ days past due, generate a formal demand letter.

Small Claims Recovery Assistant

If a borrower defaults, find jurisdiction-specific Small Claims Court filing instructions and limits.

Promissory Note by State

Generate a state-specific promissory note compliant with local usury and lending laws.

Promissory Note by Type

Choose between secured and unsecured promissory notes.

Secured Promissory Note

Backed by collateral (property, vehicle, equipment). Lower risk for lender, better terms for borrower.

PDFWordODT

Unsecured Promissory Note

Based solely on borrower creditworthiness. No collateral required, but higher interest rates.

PDFWordODT

5-Step Process Guide

From agreeing on terms to final release — everything you need to know.

Both parties negotiate and agree upon the core terms: principal amount, interest rate, repayment schedule, and any collateral requirements.

  • Define the exact principal amount being lent
  • Agree on interest rate (verify against state usury limits)
  • Set the maturity date or repayment timeline
  • Determine payment frequency (monthly, weekly, lump sum)
  • Specify late payment penalties and grace periods

Document Preview

Preview the sections included in your completed Promissory Note.

PROMISSORY NOTE

Legal Document

Section I.The Parties
  • Date: [DATE]
  • Borrower ("Maker"): [BORROWER NAME], [ADDRESS]
  • Lender ("Payee"): [LENDER NAME], [ADDRESS]
Section II.Promise to Pay
  • FOR VALUE RECEIVED, the undersigned Borrower promises to pay to the order of the Lender the sum of $[AMOUNT] (the "Principal").
Section III.Interest
  • Option A: The Note SHALL bear interest at [X]% per annum.
  • Compounding: ☐ Simple Interest ☐ Compound (Annual/Monthly)
  • Option B: The Note shall NOT bear interest (0% APR).
Section IV.Allocation of Payments
  • All payments shall be applied first to accrued interest, then to principal.
  • Payment Schedule: ☐ Weekly ☐ Bi-Weekly ☐ Monthly ☐ Lump Sum ☐ On Demand
Section V.Acceleration
  • Upon default, the Lender may declare the entire unpaid balance immediately due and payable.
  • Default defined as: failure to make payment within [X] days of due date.
Section VI.Pre-Payment
  • ☐ Borrower MAY prepay without penalty at any time.
  • ☐ Borrower SHALL be subject to a prepayment penalty of [X]%.
Section VII.Security
  • ☐ SECURED: Borrower pledges the following collateral: [DESCRIPTION OF COLLATERAL]
  • ☐ UNSECURED: No collateral is pledged.
Section VIII.Governing Law
  • This Note shall be governed by the laws of the State of [STATE].

Borrower (Maker) Signature & Date

Lender (Payee) Signature & Date

Guarantor (if applicable) Signature & Date

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