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Simple Promissory Note Template
Create a straightforward written promise to repay a loan between individuals or small businesses.
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Simple Promissory Note Template
This Simple 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”).
All payments will be made in lawful money of [Currency, e.g., “United States Dollars”].
3. Interest
Select one option and complete:
☐ Interest-Free Note: This Note is interest-free. No interest will accrue on the unpaid Principal.
☐ Interest-Bearing Note: 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
Choose one repayment structure and fill in the details.
4.1 Installment Payments
The Maker will repay Principal (and interest, if any) 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. Payment Method
Payments shall be made by [Bank transfer / Check / Other] to:
Payee / Account Name: [Name]
Bank / Institution: [Bank Name]
Account Number / IBAN: [Account Number / IBAN]
Payment Reference: [Suggested reference, e.g., “Note – Maker Name”]
Unless Payee gives written notice of a change, payments shall be sent to the Payee’s address or account listed above.
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, if any].
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 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, plus any accrued interest and permitted fees, immediately due and payable by giving written notice to the Maker.
9. Secured or Unsecured
This Note is (select one):
☐ Unsecured: This Note is not secured by any collateral.
☐ Secured by Separate Agreement: This Note is intended to be secured by collateral described in a separate security or pledge agreement between Maker and Payee dated [Date of Security Agreement].
If secured, enforcement of any security interest in collateral will be governed by that separate agreement and applicable law.
10. Application of Payments
Unless the parties agree otherwise in writing:
Each payment will be applied first to accrued but unpaid interest (if any) and then to unpaid Principal.
11. Notices
Any notices or communications in connection with this Note shall be in writing and delivered to the addresses or email addresses listed in Section 1, unless a party provides updated contact details 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. 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].
13. Entire Agreement and No Waiver
This Note contains the entire understanding between Maker and Payee regarding the debt evidenced by this Note and supersedes any prior oral or written understandings about this specific loan.
If the Payee does not enforce a right under this Note at a particular time, that does not mean the right is waived or cannot be enforced later.
Signatures
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 Simple 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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Learn more about
Simple Promissory Note Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
SIMPLE PROMISSORY NOTE TEMPLATE FAQ
What is a simple promissory note?
A simple promissory note is a short written promise by one person (the borrower) to pay a specific amount of money to another person (the lender) on certain terms. It usually covers only the key points: amount, interest (if any), due date, and what happens if payment is late.
When should I use this Simple Promissory Note template instead of a full loan agreement?
Use this template when you want a clear, basic written promise for a relatively simple loan, without a lot of extra clauses. For more complex deals (collateral, business covenants, detailed representations), a longer loan agreement may be better.
Can this simple promissory note be interest-free?
Yes. You can set the interest rate to 0% if you agree on an interest-free loan. If you do charge interest, make sure the rate complies with local usury and tax rules.
Is this promissory note secured by collateral?
This template is written to work mainly as an unsecured note (no collateral described). However, you can tick “Secured” and refer to a separate security agreement if the parties decide to use collateral.
Is a simple promissory note legally binding?
If properly completed and signed, a promissory note can be a binding contract, as long as basic contract requirements are met under local law. For larger loans or special circumstances, the parties may want legal advice.
Can AI Lawyer help me fill in this Simple Promissory Note?
Yes. AI Lawyer can help you insert names, amounts, dates, interest, and repayment details into this Simple Promissory Note so you have a clean, organized document ready for signature.
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