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Personal Promissory Note Template
Put a personal loan promise in writing so both lender and borrower understand the amount owed and how it will be repaid.
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Personal Promissory Note Template
This Personal Promissory Note (“Note”) is made as of [Date of Note].
1. Parties
Maker (Borrower):
Full Legal Name: [Maker Full Legal Name]
Address: [Street Address, City, State/Province, ZIP/Postal Code, Country]
Phone: [Maker Phone Number]
Email: [Maker Email Address]
Payee (Lender):
Full Legal Name: [Payee Full Legal Name]
Address: [Street Address, City, State/Province, ZIP/Postal Code, Country]
Phone: [Payee Phone Number]
Email: [Payee Email Address]
2. Principal Amount and Promise to Pay
For value received, the undersigned Maker promises to pay to the order of the Payee the principal sum of:
Principal Amount: [Amount in figures] ([Amount in words]) (“Principal”).
Payment will be made in lawful money of [Currency, e.g., “United States Dollars”] according to the terms of this Note.
3. Interest
Select one option and complete:
☐ Interest-Free: This Note is interest-free. No interest will accrue on the unpaid Principal.
☐ Interest-Bearing: The unpaid Principal shall bear interest at the rate of [Annual Interest Rate %] per year, calculated on the basis of [simple interest / other basis] on the outstanding Principal balance.
Interest Start Date: [Date from which interest begins to accrue].
4. Repayment Terms
Choose one structure and fill in details.
4.1 Installment Payments
Maker will repay this Note in installments as follows:
Number of Payments: [Number]
Amount of Each Payment: [Amount per payment]
Payment Frequency: [Monthly / Quarterly / Other]
First Payment Due Date: [MM/DD/YYYY]
Subsequent Payments: [e.g., “Due on the same day of each following month until paid in full.”]
On the final payment date, any remaining unpaid Principal and accrued interest (if any) will be due in full.
OR
4.2 Single Lump-Sum Payment
Maker will pay the entire Principal, plus any accrued interest (if applicable), in one lump sum on or before:
Maturity Date (Final Due Date): [MM/DD/YYYY].
5. Method and Place of Payment
Payments shall be made in [Currency] by [Bank transfer / Check / Other method] to:
Payee / Account Name: [Name]
Bank / Institution: [Bank Name]
Account Number / IBAN: [Account Number / IBAN]
Payment Reference: [Suggested reference, e.g., “Promissory Note – Maker Name”]
Unless the Payee provides written notice of a change, payments shall be sent to the Payee’s address or account listed in this Note.
6. Prepayment
Maker may prepay all or any part of the outstanding Principal and accrued interest (if any) at any time without penalty, unless otherwise stated here: [Prepayment conditions or “No prepayment penalty”].
Any prepayment will first be applied to accrued but unpaid interest (if any) and then to Principal.
7. Late Payment and Default
7.1 Late Payment
A payment is considered late if it is not received within [Number] calendar days after its scheduled due date.
Late Fee (if any): [Currency and Amount or Percentage, or “No late fee will be charged.”]
7.2 Default
Maker will be in default under this Note if:
Maker fails to pay any amount due under this Note within [Number] days after receiving written notice of non-payment from Payee; or
Maker otherwise materially breaches this Note and does not correct the breach within [Number] days after written notice from Payee.
8. Acceleration
If a default occurs and continues past any applicable cure period, the Payee may, subject to applicable law, declare the entire unpaid Principal balance, together with any accrued interest and permitted fees, immediately due and payable by giving written notice to the Maker.
9. Unsecured / Secured Status
This Note is (select one):
☐ Unsecured Note: This Note is not secured by any collateral.
☐ Secured Note: This Note is intended to be secured by collateral described in a separate security agreement or pledge agreement between the parties dated [Date of Security Agreement].
If this Note is secured, enforcement of any security interest in collateral shall be governed by that separate agreement and applicable law.
10. Application of Payments
Unless otherwise agreed in writing:
Each payment will be applied first to any accrued but unpaid interest (if applicable), and then to unpaid Principal.
If Maker has outstanding fees that are allowed under this Note and applicable law, payments may be applied to such fees after interest and before Principal if the parties agree.
11. Notices
Any notices or communications in connection with this Note shall be in writing and delivered to the addresses or email addresses listed for the parties above, unless a party notifies the other of a new address in writing.
Permitted methods of notice include:
Personal delivery;
Mail or courier;
Email, if both parties regularly use email and agree to receive notices electronically.
12. Assignment
Maker may not assign this Note or transfer obligations under it without the prior written consent of the Payee.
The Payee may assign or transfer this Note, in whole or in part, if allowed by applicable law, by endorsing the Note or by separate written assignment, and providing notice to the Maker.
13. Governing Law
This Note is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules, unless the parties specify a different governing law here: [Alternative Governing Law, if any].
14. Miscellaneous
Entire Agreement: This Note represents the entire understanding between Maker and Payee with respect to the loan evidenced by this Note and supersedes any prior oral or written understandings regarding this specific debt.
Severability: If any provision of this Note is found invalid or unenforceable, the remaining provisions will continue in effect to the extent permitted by law.
No Waiver: The Payee’s failure to enforce any provision at any time does not waive the right to enforce the same or any other provision later.
Signatures
By signing below, the Maker agrees to repay this Note as stated above, and the Payee accepts this Note under these terms.
Maker (Borrower):
Signature: _______________________________
Printed Name: [Maker Full Legal Name]
Date: [MM/DD/YYYY]
Payee (Lender):
Signature: _______________________________
Printed Name: [Payee Full Legal Name]
Date: [MM/DD/YYYY]
Witnesses (If Used)
Witness 1:
Signature: _______________________________
Printed Name: [Witness 1 Full Name]
Address: [Witness 1 Address]
Date: [MM/DD/YYYY]
Witness 2 (if required):
Signature: _______________________________
Printed Name: [Witness 2 Full Name]
Address: [Witness 2 Address]
Date: [MM/DD/YYYY]
Notary Acknowledgment (If Required)
State/Province of [State/Province]
County of [County]
On [Date], before me, [Notary Full Name], a Notary Public, personally appeared [Maker Full Legal Name] and [Payee Full Legal Name], who proved their identities on the basis of satisfactory evidence and acknowledged that they executed this Personal Promissory Note for the purposes stated in it.
Notary Public Signature: _______________________________
Notary Public Printed Name: [Notary Full Name]
My Commission Expires: [Date]
Notary Seal: ☐
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Personal Promissory Note Template
PERSONAL PROMISSORY NOTE TEMPLATE FAQ
What is a personal promissory note?
A personal promissory note is a written promise by one person (the borrower, or “Maker”) to pay a specific sum of money to another person (the lender, or “Payee”) under stated terms. It usually includes the principal amount, interest (if any), repayment schedule, and what happens if the borrower does not pay on time.
When should I use a personal promissory note?
Use a personal promissory note any time one individual is lending money to another and both want the basic terms—amount, interest rate, due dates, and default rules—clearly written down. It can be used with or without a separate loan agreement for simple personal loans, family loans, or private loans between friends.
Does a promissory note have to include interest?
No. A promissory note can be either interest-free or interest-bearing. If interest is charged, the note should clearly state the rate, how it is calculated (for example, simple annual interest), and when it starts. Local tax and usury laws may limit what interest can be charged.
Is a personal promissory note the same as a loan agreement?
Not exactly. A promissory note focuses on the borrower’s promise to pay and core repayment terms. A loan agreement is usually longer and may cover more topics such as representations, covenants, security, and additional legal terms. Many simple personal loans are documented only with a promissory note.
Can a personal promissory note be unsecured or secured?
Yes. A personal promissory note can be unsecured (no collateral) or used together with a separate security agreement that pledges collateral. This template lets you indicate whether the note is unsecured or secured by another agreement, without describing collateral in detail.
Can AI Lawyer help me customize this Personal Promissory Note?
Yes. AI Lawyer can help you fill in this Personal Promissory Note with your names, principal amount, interest rate, repayment dates, and any special terms so you have a clear, organized document ready to sign.
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