Promissory Note Template

A promissory note is a legally binding written promise by one party (the borrower or maker) to pay a specific sum of money to another party (the lender or payee) under defined terms. Unlike a loan agreement, a promissory note is typically a simpler, one-party document signed only by the borrower.

This promissory note template covers all essential elements: the principal loan amount, the interest rate (fixed or variable), the repayment schedule (lump sum or installments), the maturity date, late payment penalties, and default provisions including the lender's remedies.

The template includes both demand notes (payable when the lender demands) and installment notes (payable on a fixed schedule). For larger loans, the template includes an amortization table to clearly document each scheduled payment.

Promissory notes are commonly used for personal loans between family members, business startup loans, seller financing on property sales, and business-to-business credit arrangements. This template provides the legal documentation needed to formalize these arrangements professionally.