A simple promissory note is mostly used as a short term loan where one person will lend money (Lender) to someone else (Borrower). If repayment stretches beyond the due date interest will begin to accumulate. Once this form is signed with both parties present it becomes legal but is advised that all payments and notifications be copied and saved for each person’s records.
A basic promissory note which allows for the amount owed, period of loan, and interest rate (%).
A sample template to show an individual how to structure the agreement.
Allows the creditor to obtain an asset from the borrower if the note is not paid on time.
Does not allow an asset to be obtained if the note is not paid. The creditor will be required to seek repayment through a legal or alternate source.