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A detailed guide to fill a promissory note template

Promissory notes are easy to understand even without any prior legal knowledge. Here is a step-by-step guide to filling a promissory note template.

Step 1: Lender and borrower

Enter the day month and year followed by the name of the borrower and lender. Next, go on to mention the mailing addresses of both parties.

A detailed guide to fill a promissory note template
Ensure that the lender fills in the loan amount in numbers and words. Write In the annual interest rate percentage.

Step 2: Payments

Enter the due date for the loan repayment by mentioning the day, month and year. Next, you need to choose whether the loan is going to be repaid lump-sum or in installments. Check the desired option. If you go in for the latter option, you need to fill in a late fee if a borrower fails to make the repayment on time.

Step 3: Secure or Unsecure

If you are a lender, it is recommended that you select Secure in the promissory note. Pawn-shop owners mainly use this method. If you are planning on loaning money to an individual or business, choose Unsecure . Note that you need to trust your borrower enough if you are issuing an unsecure promissory note.

Step 4: Co-signer

In the event that the original borrower fails to repay the loan, a co-signer must shoulder the responsibility of making the repayment. In the absence of collaterals, co-signers possess an Unsecure promissory note. Borrowers who place a collateral need not have a co-signer.

Step 5: Governing law

Fill in the state whose jurisdiction your note falls under. You must also enter the condition of the lending individual or business.

Step 6: Signatures

The promissory note must be authorised with a signature by the lender, the borrower as well as a witness. If there is a co-signer, the said individual must be present as well. Ensure that the involved parties fill in the form with their names, date and their signatures.

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