This is a Promissory Note for use in any state. The promissory note is unsecured, with a fixed interest rate, and contains a provision for installment payments.
This is a Promissory Note for use in any state. The promissory note is unsecured, with a fixed interest rate, and contains a provision for installment payments.
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In order for a promissory note to be valid and legally binding, it needs to include specific information. "A promissory note should include details including the amount loaned, the repayment schedule and whether it is secured or unsecured," says Wheeler.
To write a promissory note for a personal loan, you will need to include the names of both parties, the principal balance, the APR, and any fees that are part of the agreement. The promissory note should also clearly explain what will happen if the borrower pays late or does not pay the loan back at all.
You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.
In common speech, other terms, such as "loan", "loan agreement", and "loan contract" may be used interchangeably with "promissory note".
How to Write a Promissory NoteDate.Name of the lender and borrower.Loan amount.Whether the loan is secured or unsecured. If it's secured with collateral: What is the collateral?Payment amount and frequency.Payment due date.Whether the loan has a cosigner, and if so, who.
Although it's a legal document, writing a promissory note doesn't have to be difficult. There are even websites online that offer fill-in-the-blank templates, like or .
Detailed Information The note has all the required information including the name of the drawer and payee, date of maturity, terms of repayment, issue date, name of the drawee, name, and signature of the drawer, principal amount, and the rate of interest, etc.
Although a promissory note is usually written on a computer and printed out or a pre-made form is filled out, a handwritten promissory note signed by both parties is legal and will stand up in court.