30 Free Promissory Note Templates (Word) By Mark Strutton. A promissory note is simply a “note with a promise” i.e. a document that says that one party promises another party a certain amount of money at a certain point in time. It’s like an IOU (I owe you), but more formal and used to collect cash in return for future receivables. A promissory note is just a simple promise made by the debtor to the creditor to pay off the debts or credit they have taken. This agreement contains a payer, who is actually the maker of the promissory note, and the payee, who is the lender. Generally, promissory notes are treated as financial instruments containing a written promise by one Estimated Reading Time: 9 mins. Promissory Note (Loan Agreement) 8 Forms. Sometimes, people go to entities or individuals that can lend them the money they need. In turn, the other party provides it with interest rates and other requirements, in a promissory note. Eliminate doubts by creating an enforceable promissory note for your loan agreement on this website.
3. Free Promissory Note Template. Download a free promissory note template below. You can choose to make it either secured, or unsecured: Secured Promissory Note: Use this document if you want the borrower to agree to give up property (like jewelry, cars, businesses, or stocks) if they fail to pay back the loan. A secured promissory note is a document that allows a lender to lend money with the added insurance of having assets property to be handed over to them in the chance the borrower defaults. This type of note carries less risk to the lender and usually allows the borrower to pay a lesser interest rate. A promissory note is a bill of exchange. Consequently the applicable law can be found in the Bills of Exchange Act It is advised that consideration should also be had of s.6 of the Limitation Act which deals with the time limit within which any loan, including those which are acknowledged by a promissory note, can be enforced.
Create a free Promissory Note (also known as an IOU) to document your loan. A Promissory Note is used for straightforward, basic loans, and to outline payment terms such as due date and interest. Print or download your contract in minutes. Unsecured Promissory Note – Does not allow the lender to secure an asset for money loaned. This means that if the payment is not made by the borrower that the lender would have to either file in small claims court or through other legal processes. Download: Adobe PDF, MS Word .docx), OpenDocument. 3. Free Promissory Note Template. Download a free promissory note template below. You can choose to make it either secured, or unsecured: Secured Promissory Note: Use this document if you want the borrower to agree to give up property (like jewelry, cars, businesses, or stocks) if they fail to pay back the loan.
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