Promissory Note Template
Create a clear and legally sound promissory note with our customizable template
If you're struggling to meet a payment deadline, having a formal agreement is essential. This Promissory Note Template helps you establish clear terms when borrowing or lending money, ensuring both parties understand their obligations. With this template, you can easily customize repayment schedules, interest rates, and other essential details, making it perfect for personal loans, business agreements, or informal arrangements. Plus, its user-friendly design ensures you can create a professional-looking document quickly. Try out the live template now.
When to use this form
Use this form when you lend or borrow money and want clear, enforceable terms. It fits private loans between friends or family, a short bridge loan for a home purchase, seller financing for a car, or a business cash infusion. The document sets the amount, interest, due dates, late fees, collateral, and what happens if payments stop. For business deals, gather borrower details first with a Commercial loan application form. For vehicle purchases, pair it with an Auto loan application form to keep the file complete. With signatures and a repayment plan in writing, both sides know what to expect and can avoid disputes.
Must Ask Promissory Note Questions
- Who are the lender and borrower (full legal names and addresses)?
Clear identity ties the promise to the right people and avoids mix-ups. Accurate addresses ensure you can deliver notices and enforce the agreement.
- What is the principal amount, interest rate (APR), and how is interest calculated (simple or compound)?
These terms set the true cost of borrowing so neither side is surprised. They also let you calculate payoff amounts correctly and check any rate limits.
- What is the repayment schedule and method (due dates, frequency, and payment channel)?
Spelling out when and how to pay reduces late payments and support questions. It also helps you plan cash flow and set reminders.
- Is there collateral or a co-signer? If yes, describe the asset or guarantor details.
Security gives the lender a fallback and can lower the rate. Precise descriptions protect both sides if you ever need to repossess or claim.
- Is this loan paying off an existing mortgage or debt?
Linking the funds to a specific payoff prevents shortfalls and double interest. The Mortgage payoff statement request form helps you confirm the exact balance and per-diem interest.
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