Family Member Promissory Note Template

FAMILY MEMBER PROMISSORY NOTE TEMPLATE FAQ

What is a family member promissory note?

A Family Member Promissory Note is a written promise to repay money borrowed from a relative. It helps prevent misunderstandings by putting the loan amount, repayment plan, and expectations in writing — even when the loan is informal.

Should you charge interest on a family loan?

It depends on your goals and local rules. Some families choose “no interest,” while others use a small interest rate. In some countries, tax rules may treat very low or no-interest loans differently. If you’re unsure, consider asking a tax professional.

What should be included in the note?

Include: the amount borrowed, the date of the loan, repayment schedule, interest (if any), late fees (optional), and what happens if payments are missed. This template also includes an optional “forgiveness” clause you can use if the lender might forgive part of the loan in the future.

Can this affect family relationships?

It can actually help protect relationships by setting expectations and reducing stress. The key is to keep the note simple, clear, and respectful — this template is written in plain language.

Do you need witnesses or notarization?

Not always. For larger amounts, notarization can help prove authenticity and prevent disputes. This template includes optional witness and notary sections.

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