Promissory Note Template – 40+ Free (For Word, PDF)

Loans are a significant source of cash infusions. If you have ever accessed a loan, you have signed a promissory note at one point. Promissory notes protect the contractual relationship between the lender and the borrower and are essential debt instruments in businesses and personal finance. Below we analyze the promissory note, preparing one, and how usury laws apply to the note.

What Is a Promissory Note?

A promissory note or note payable is a legally binding written declaration stating a borrower agrees to pay the lender a specific sum of money on demand or at a specified future date. At the minimum, a promissory note details the principal amount, interest rates, and payment date.

What Is A Promissory Note Template?

A promissory note is a pre-designed fillable form containing the essentials of a promissory note. With a template, all you need to do is key in the party’s names, amount, date, and signature to make the form legitimate.

Promissory Note Templates & Examples

Promissory Note Template #01

Promissory Note Template #02

Promissory Note Template #03

Promissory Note Template #04

Promissory Note Template #05

Promissory Note Template #06

Promissory Note Template #07

BUILDING REUSE PROGRAM

CONVERTIBLE PROMISSORY NOTE

FIRST AMENDMENT TO PROMISSORY NOTE

master promissory note

PROMISSORNYO TE& SALARYD EDUCTIOANU THORIZATION

PROMISSORY NOTE AND LOAN AND SECURITY AGREEMENT

PROMISSORY NOTE CONTRACT

PROMISSORY NOTE TEMPLATE

PROMISSORY NOTE

SIMPLE INTEREST ONLY

SOUTH CAROLINA PROMISSORY NOTE

STUDENT LOAN PROGRAM

Third Party Promissory Note Form

    When to Use a Promissory Note?

    A promissory note formalizes the loan agreement and details the terms of payment. Use promissory notes when lending out substantial amounts of money. Ideal utilities for the promissory notes include car, mortgages, business, student, and personal loans.

    Tip: Contemporaneously prepare a loan agreement with a promissory note. The loan agreement further strengthens the legitimacy of the promissory note.

    Loan Promissory Note Template

    It is a promise to pay a loan made by the borrower. It is a financial tool, and it shows the amount of cash the borrower should pay, inclusive of interest at a future date. Like any other promissory note, the parties will fill in details as required; this is important for future reference.

    Loan Promissory Note Template
    wsba.org
    Download

    Vehicle Promissory Note Template

    Used in the buying and selling of vehicles, whereby vehicle repossession happens if the borrower does not fulfill the contract terms. Parties will fill in similar details as seen with other types of promissory notes. It could also be a type of secured promissory note.

    Vehicle Promissory Note Template
    colorado.gov
    Download

    Secured Promissory Note Template

    Secured Promissory Note Template
    cironline.org
    Download

    Mortgage Promissory Note Sample

    Mortgage Promissory Note Sample
    translegal.com
    Download

    Release of Promissory Note Template

    Release of Promissory Note Template
    carrolllibrary.org
    Download

    for Corporate Reimbursement

    Promissory Note for Corporate Reimbursement
    newhaven.edu
    Download

    Unsecured Promissory Note Template

    Unsecured Promissory Note Template
    oag.ca.gov
    Download

    Promissory Note Template PDF

    Promissory Note Template PDF
    slowmoneymaine.org
    Download

    Printable Blank Promissory Note

    Printable Promissory Note Template
    wkblaw.com
    Download

    Promissory Note on Demand

    Promissory Note On Demand
    unknown
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    Promissory Note in PDF

    Promissory Note Template in PDF
    register.shelby.tn.us
    Download

    Interest Promissory Note Template

    Interest Promissory Note Template
    unknown
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    Fillable Blank Note Template

    Fillable Promissory Note Template
    unknown
    Download

    Promissory Note Sample

    Promissory Note Sample
    unknown
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    Secured Promissory Note (Word)

    It is a legally binding agreement, and it is between the lender and the borrower. Details included in this note include the amount borrowed, personal information of the borrower, and payment terms. It is made on the borrower’s ability to pay, secured via something of value like a house.

    Secured Promissory Note Template Word
    unknown
    Download

    Simple Promissory Note Template

    It is similar to a secured promissory note; however, it is a note secured through something of value. The similarity is through the details parties involved fill. These include names and signatures, date, state, amount of cash involved, and a witness signature.

    Promissory Note Template Word
    unknown
    Download

    Simple Promissory Note

    Simple Promissory Note
    unknown
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    Promissory Note for Deed of Trust

    Promissory Note for Deed of Trust
    unknown
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    Promissory Note Corporation Template

    Promissory Note Corporation Template
    unknown
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    Promissory Note (PDF)

    Promissory Note in PDF
    unknown
    Download

    Promissory Note Template (Word)

    Promissory Note Template in Word
    unknown
    Download

    How To Calculate

    Calculating the periodic payment amount (usually monthly) requires you to calculate the total amount owed plus interest. Below is how you go about it:

    • Calculate the total interest owed. Principal x interest rate= total interest owed. If the interest compounds quarterly, or monthly, you will have to refigure the principal for the period.
    • Computer the repayment amount. Principal + interest owed= total repayment amount.
    • Finally, divide the loan repayment amount by the number of months and note it down. In your promissory note, you will write it as the borrower’s monthly payment.

    Tip: Use free interest calculators online or software if you are not a fan of brain-churning calculations.

    How to Write

    A well-written promissory note properly documents the loan and ensures the borrower will pay you back. If you don’t know how to write one, follow these easy to do steps:

    1) Input lender’s and borrower’s details

    Write both the sender’s and lender’s legal names and addresses.

    2) Effective and due date

    State the date the note becomes effective and when the final payment from the borrower is due. Write the effective date before the borrower’s name and the due date after the payable amount.

    3) Repayment amount

    Write the principal sum plus the interest charged on loan. Detail the %interest and the frequency of compounding.

    Tip: Use professionally designed templates to prepare your promissory note. Customize it to suit your needs and counter-check before downloading the template.

    4) Payment plan

    Under this section, concisely describe the mode of payment, periodic payment amount, and the maturity date for the loan. Indicate the payment that offsets the principal balance and the percentage that the borrower pays as interest.

    5) Sign the note

    The borrower will sign the not either with a notary public present, witness or none, depending on the state laws. Witnesses and the lender can also sign the note, although it doesn’t add an extra layer of legality.

    Usury Laws

    Usury is charging higher interest than the maximum allowable interest on loans. Each state has varying rates. Check out the Usury Rate Laws for your state, or liaise with your attorney when preparing your promissory note.

    Warning: Unreasonable usury may render the promissory note unenforceable. Check the maximum interest your state allows before exceeding it.

    Different Key Terms & Clauses

    • Conflicting terms that state no there agreement can supersede the promissory note.
    • Allocation of payment details the late fees, interest, and principal amount.
    • Attorney’s fees and costs acknowledge the borrower will pay reasonable attorney fees for legal proceedings if they default on the loan.
    • Integration clause that states no other legal document will interfere with the legitimacy of the promissory note.
    • Prepayment clause detailing the provisions and any fees for paying the loan early.
    • Severability exempts other aspects of the note from invalidation if one of the note’s provisions is void.

    FAQs

    Can I write my own promissory note?

    Yes, any lender can write a promissory note, whether an entity or an individual. Check your state laws if they require the note to be notarized or witnessed.

    How legal is a promissory note?

    A promissory note is legally binding, and contravening the agreement will lead to repossession of collateral the borrower put on the loan. However, for the note to be legit, the borrower must sign it.

    Is a witness required for a promissory note?

    A witness is generally a prudent move when signing a promissory note; however, it’s unnecessary. State laws vary, and your state may require a witness to the note. It is best to consult your attorney before preparing the note.

    Do promissory notes need to be notarized?

    Promissory notes are valid without a notary public during the signing. However, some states require the note to be notarized; otherwise, it won’t hold any weight in court.

    How do I secure a promissory note to my property?

    Any valuable property acts as the collateral for the loan. Conversely, you will need a deed of trust to secure the promissory note with real estate.

    For how long is a promissory note valid?

    The statute of limitations varies from state to state, but the typical validity period is 3-15 years. However, if the lender specified maturity date, it is valid until the last payment is due on the set date.

    How many parties are there on a promissory note?

    There are two parties to a promissory note. However, some templates include a third party on a co-signed loan.

    What happens if a promissory note is not paid?

    The borrower will lose the collateral that secured the loan, or the lender can pursue legal action to seek restitution.

    Who can witness a promissory note?

    A disinterested party can witness a promissory note. The witness will sign the note to make it legitimate.

    Who prepares a promissory note?

    The lender typically prepares the promissory note for the borrower to sign.

    Can a promissory note hold up in court?

    A promissory note is legally enforceable. However, the note must have the borrower’s signature, reasonable interest rates, and within the confines of the statute of limitations to carry weight in court.

    What signatures are needed on a promissory note?

    The necessity is a borrower’s signature. Witness and lender signatures are not a must, but it is intelligent to include them.

    Do promissory notes need to be filed?

    No, it is not mandatory to record a promissory note. It is still enforceable without filing it.

    Final Thoughts

    Whether it’s a family or institutional loan, properly document the lines of credit via a promissory note. Include the relevant clauses and keep in mind usury laws. Now you are in the know about promissory notes.