Promissory Note in Loan for Business or Personal Loan
U.S.Legal Forms, Inc., offers Promissory Note forms for all States. Unsecured, secured and special matter notes. State Specific Notes. Notes with interest, without interest, payable on demand, in installments and lump sum.
A promissory note is a written promise to pay a debt. An unconditional promise to pay on demand or at a fixed or determined future time a particular sum of money to or to the order of a specified person or to the bearer.
How to Create a Promissory Note
Using the proper promissory note form is essential, whether making a personal loan agreement or a loan for business reasons. It's unwise to make a loan, even personal loans, without having the terms of the loan agreement in written legal notes. Even if you trust the other party to the loan agreement, memories fade over time, and people can interpret words differently. To minimize the chances of a future dispute, litigation, and loss of money, a professionally drafted promissory note template should be used.
Sample Promissory Note Terms
When choosing a sample note, you can choose from a variety of promissory note options. All options for a sample of promissory note are a matter of preference, whether you create personal loans or business loans. Some other the popular features are discussed below:
- Balloon note - A balloon note allows for an initial series of smaller payments with a larger payment made toward the end of the loan period.
- Secured or unsecured promissory note - A secured loan agreement is made by creating a security interest in an asset, known as collateral, which can be attached by the lender if the borrower defaults.
- Installment note - Typically, the borrower makes an installment payment which continues for a fixed time period. This is in contrast to a demand note, which has no fixed term, and can be required to be paid whenever the lender gives the specified notice.
- Interest rate - When creating any sample of promissory note, legal notes payable with interest should specify the interest rate, as well as the interest rate and late fees associated with any late payments.
- Master promissory note - This type of loan agreement can be used as the basis for a series of loans. A master promissory note is often used in making a student loan.
US Legal Forms offers a top quality, affordable promissory note sample to suit any need in a loan for personal use or agreement for a business loan. We have a vast selection of templates for a secured or unsecured promissory note, master promissory note, balloon note, demand note, and other samples of loan agreements.