Promissory Note Template
Promissory Note
12 sections · 16 fields to fill · free, nothing uploaded
PROMISSORY NOTE
Date:
Principal Amount:
BORROWER'S PROMISE TO PAY
FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to ("Lender"), or order, the principal sum of (), together with interest as described below.
BORROWER INFORMATION
Name:
Address:
LENDER INFORMATION
Name:
Address:
INTEREST
Interest shall accrue on the unpaid principal balance at the rate of % per annum.
PAYMENT TERMS
Payment Schedule:
The Borrower shall make payments as follows:
- Payment Amount:
- Payment Frequency:
- First Payment Due:
- Final Payment Due:
Payment Method:
Payments shall be made to .
LATE CHARGES
If any payment is more than days late, the Borrower will be charged a late fee of .
PREPAYMENT
The Borrower may prepay all or any portion of this note at any time without penalty.
DEFAULT
The Borrower will be in default if:
- Any payment is not made within days after its due date
- The Borrower files for bankruptcy
ACCELERATION
If the Borrower defaults, the Lender may declare the entire unpaid principal balance and all accrued interest immediately due and payable.
COLLECTION COSTS
If this note is placed with an attorney for collection, the Borrower agrees to pay all costs of collection including reasonable attorney's fees.
WAIVER
The Lender's delay in enforcing any term of this note shall not waive the Lender's right to enforce the same.
GOVERNING LAW
This promissory note shall be governed by applicable laws.
BORROWER'S SIGNATURE:
I acknowledge that I have read and understood this promissory note and agree to be bound by its terms.
Signature: _______________________
Name:
Date: _______________________
LENDER'S ACKNOWLEDGMENT (Optional):
Signature: _______________________
Name:
Date: _______________________
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What is a Promissory Note?
A Promissory Note — also called an IOU — is a financial document used when money is being lent, owed, paid, guaranteed or invested and both sides need the terms recorded. In short: promise to pay document.
It is typically signed by lenders, borrowers, freelancers, small businesses and anyone settling a debt. Money documents are enforceable when the amount, the schedule and the consequence of non-payment are unambiguous. Most disputes come down to a figure that was never written down or a due date that was left implied.
When you need one
- You are about to promise to pay document and want the terms recorded before anyone relies on them.
- The other side has proposed a promissory note and you want to see what a balanced version looks like first.
- A previous arrangement was verbal, and something has now happened that makes writing it down urgent.
- You need a starting point you can adapt rather than a blank page — the structure matters more than the prose.
What this Promissory Note template includes
The template is structured around 12 sections. Each one exists for a reason — if you delete one, delete it deliberately.
- 01Borrower'S Promise To Pay
- 02Borrower Information
- 03Lender Information
- 04Interest
- 05Payment Terms
- 06Late Charges
- 07Prepayment
- 08Default
- 09Acceleration
- 10Collection Costs
- 11Waiver
- 12Governing Law
Information you will need
Gather these before you start. Every one of them appears in the finished document, and a missing value is the most common reason a self-drafted promissory note fails to do its job.
- Maker Name
- Person promising to pay
- Payee Name
- Person to be paid
- Principal Amount
- Amount promised
- Interest Rate
- Interest rate %
- Due Date
- Payment due date
How to write a Promissory Note
- 1
Read the full template
Read the complete Promissory Note on this page before you use it, so you know what every clause commits you to.
- 2
Gather your details
Collect the names, addresses, dates and amounts listed in the "What you will need" section — every square-bracketed placeholder needs a real value.
- 3
Fill in the blanks on this page
Type your answers into the form beside the template and they are written into every clause that uses them as you go. Nothing is uploaded — the document is assembled inside your own browser.
- 4
Download the finished document
Download your completed Promissory Note as a PDF or an editable Word file, or copy the text. There is no signup and no watermark.
- 5
Sign and store it
Sign it — electronically with the free Sign PDF tool, or in ink where the document type requires it — and give every party a copy.
Mistakes to avoid
No repayment schedule
State the amounts, the dates and the method. "When he can" is not a term a court can enforce.
Ignoring interest-rate limits
Most jurisdictions cap interest on private loans. Exceeding the cap can render the interest — occasionally the whole debt — unenforceable.
No default clause
Say what counts as default, whether the balance becomes immediately payable, and who pays collection costs.
Lending to family on a handshake
The relationships most likely to produce an undocumented loan are exactly the ones most damaged when it goes wrong.
Jurisdiction note. Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home. This template is general-purpose information, not legal advice.
Promissory Note FAQs
Is this Promissory Note template free to download?
Yes. The complete text is published on this page — no email required. Fill in the blanks on the page, then copy it or download it as a PDF, Word (.docx) or plain-text file. There is no watermark and no usage limit.
Can I fill in this Promissory Note template online?
Yes. Every square-bracketed blank in the template above is an editable field. Type your answer once and it is written into every clause that uses it, and the document beside the form updates as you type. When you are done, download the completed PDF or Word file. It all runs inside your browser — the document is never uploaded, and your answers are saved only in this browser so you can come back and finish later.
What information do I need to complete a Promissory Note?
At minimum: maker name, payee name, principal amount, interest rate. The form on this page lists every blank the document contains and counts how many are still empty. Every placeholder in [square brackets] needs replacing before the document is signed — an unfilled bracket is the most common defect in a self-drafted document.
What should a Promissory Note include?
This template is structured around 12 sections: borrower's promise to pay, borrower information, lender information, interest, payment terms and others. Those are the provisions that make the document do its job; anything you delete, delete deliberately.
Is a Promissory Note legally binding?
Money documents are enforceable when the amount, the schedule and the consequence of non-payment are unambiguous. Most disputes come down to a figure that was never written down or a due date that was left implied. Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home.
Can I edit this Promissory Note template?
Yes, in three ways. Fill in the blanks on this page and download the result; or download the Word version and rewrite it in Word, Pages or Google Docs; or open it in the LegalDraft AI app, where the AI can rewrite any individual clause to be stricter, simpler or more balanced and review the finished document for risk before you sign.
Do I need a lawyer for a Promissory Note?
Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home. For routine, low-value arrangements a carefully completed template is usually proportionate. The larger the sum, the more one-sided the terms, or the more the document depends on local statute, the stronger the case for professional review.
Related templates
Draft your promissory note in about three minutes
Answer a few questions and the app writes the whole promissory note around your answers — then flags anything that puts you at risk.
- Your details written into the right clauses
- Any clause rewritten simpler, firmer or fairer
- Sign it and export PDF or Word without a printer
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