Family Member Promissory Note Template

This Family Member Promissory Note (the “Note”) is made on [Date].

1. Parties

1.1 Lender: [Lender Full Name], address: [Address].
1.2 Borrower: [Borrower Full Name], address: [Address].
1.3 Relationship (Optional): [e.g., parent/child/sibling/cousin].

2. Loan Amount

2.1 Principal. Borrower promises to pay Lender the principal sum of $[Amount].

3. Interest

3.1 Interest Rate (Select One): ☐ No interest ☐ Interest at [__]% per year.
3.2 Interest accrues on the unpaid principal balance (if applicable).

4. Repayment Terms

4.1 Payment Type (Select One):
☐ Lump sum payment on [Due Date]
☐ Installments of $[Amount] per ☐ week ☐ month, starting [Start Date], due on the [__] day of each period
☐ Other schedule: [Describe]

4.2 Final Due Date. Any remaining balance is due on [Final Due Date].

5. Payment Method

5.1 Payments will be made by: ☐ Bank transfer ☐ Cash ☐ Check ☐ Other: [Method].
5.2 Payments will be delivered to: [Payment details].

6. Prepayment

6.1 Borrower may prepay at any time ☐ without penalty ☐ with penalty: [Terms].

7. Late Payments (Optional)

7.1 Payment is late after [] days.
7.2 Late fee: $[] or [__]% (if permitted).

8. Default

8.1 Default includes failure to pay or material breach.
8.2 Upon default, Lender may request immediate payment of the remaining balance, subject to applicable law and reasonable family communication.

9. Forgiveness (Optional)

9.1 Any loan forgiveness must be in writing and signed by the Lender. Partial forgiveness terms (if any): [Details].

10. Governing Law

10.1 This Note is governed by the laws of [State/Country].

Signatures

Lender: [Full Name]
Date: [Date]
Signature: ___________________________

Borrower: [Full Name]
Date: [Date]
Signature: ___________________________

Witnesses (If Required)

Witness Name: [Name]
Date: [Date]
Signature: ___________________________

Notary / Notarization (Optional)

State of [State]
County of [County]

On [Date], before me, [Notary Name], personally appeared [Lender Name] and [Borrower Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Note, and acknowledged that they executed it for the purposes stated.

Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________