Promissory Note Template Information
What Is A Promissory Note?
A promissory note is an agreement between two or more people. Promissory Notes is an official document used when you are either borrowing money from someone, or lending money to someone.
The promissory note will outline the details of the lender and the borrower, as well as provide the payment amount and any sort of repayment plan. There may be additional guidelines as well for example a late penalty fee, or interest on the loan.
Finally, the document must be signed by both parties.
Where Can I Get A Promissory Note?
Right here at DIY Landlord Forms. Along with landlord forms, we also provide non-landlord forms for your convenience. To get our promissory note, click here: Promissory Note.
Why Do You Need A Promissory Note?
Ever lent money to a friend? How did that go? Yeah – that’s what we thought.
We loan or borrow money all the time – especially from friends – and it can create a huge hassle when it comes to payment. Most people loan money without a second thought – while getting documentation providing details to the loan is crucial. Not only can it protect you in court if things go south, but it will also give you additional things to think about in regards to the loan.
Finally, it also makes it more “serious” to the borrower. When the borrower has signed a piece of paper documenting everything in regard to the loan, they understand it is a lot more strict and if they miss payments they can be held responsible legally.
What Should Be Included In A Promissory Note?
You should detail the lender, and the borrower. At least the names, and it’s recommended you provide current addresses too. If there are multiple lenders or borrowers then be sure to include them all within the promissory note.
You should then provide information as to the amount of money that is being borrowed, and then the repayment amount and schedule. For example, you may insist on weekly or monthly payments, or a one time repayment made on a specific date.
Additional details in regard to the loan you may wish to consider adding:
- Interest on the loan. If you are adding interest, list the percentage and how often it is compounded.
- A detailed payment schedule. You may wish to attach a detailed payment schedule to the promissory note, breaking down exactly when payments are made.
- When repayments will begin. What date they will start – when the borrower will start giving back money to the lender.
- Late payment penalty. After a certain amount of days of a payment being missed, you may wish to charge a late payment penalty to it.
- Collateral. Often, the borrower will provide some sort of collateral. If this is the case, be sure to outline it within the promissory note.
And as with any legal form you should have it signed, list the signature date and possibly add witnesses.
Promissory Note Templates:
To see our template for the Promissory Note, please click here: Promissory Note Template and choose to create the form. You will then see a blank promissory note template showing what is within the document.
Sample Promissory Note:
Just like the above, click the link and click to create the agreement and you will see the document. You can play around with all of the options to see what they look like if one is checked “Yes” as opposed to “No”.
Please note that upon completion of your promissory note, it will be available in RTF, PDF and HTML format.