Free Templates / Promissory Note

    Free Promissory Note Template

    Lending money to a friend, family member, or business partner? A promissory note turns a handshake into an enforceable written promise with a clear repayment plan. This free template covers principal, interest, payments, and what happens on default.

    Download the PDF for free, or send it for electronic signature so lender and borrower both hold the same signed note.

    Download Free PDF

    2-page PDF. Free to download, no signup required.

    What this template covers

    • Principal amount and a simple-interest rate, or an interest-free loan
    • A repayment schedule with prepayment allowed at any time without penalty
    • Late charges and a default clause with notice and a chance to cure
    • Optional collateral to secure the loan
    • A usury savings clause so interest never exceeds your state's legal maximum

    How to use it

    1. 1Fill in the borrower, the lender, the amount, the rate, and the repayment schedule.
    2. 2Describe collateral if the loan is secured, or leave it blank for an unsecured loan.
    3. 3Both parties sign electronically and each keeps the signed note with its audit certificate.

    Frequently asked questions

    Is a promissory note legally binding?

    Yes. A signed promissory note is an enforceable promise to pay. Putting the terms in writing is what makes family and friend loans collectable if things go wrong.

    What interest rate can I charge?

    Each state sets maximum legal rates (usury limits). This template includes a savings clause that automatically reduces any excessive rate to your state's maximum, but check your state's limit when setting the rate.

    What happens if the borrower stops paying?

    After a payment is fifteen days late, the lender can give written notice with ten days to cure. If it is not cured, the full balance becomes due, and the borrower is responsible for reasonable collection costs.

    Should the loan be secured?

    For larger loans, listing collateral gives the lender a claim to specific property if the borrower defaults. Small personal loans are commonly unsecured. The template supports both.

    Get it signed in minutes

    Send this promissory note for legally binding electronic signature with SignSimple. Every signer gets their own copy, and you get a full audit certificate. Unlimited documents, always free.

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    These templates are provided for general informational purposes only and are not legal advice. Laws vary by state; for important or unusual situations, have an attorney review your document.