financial-agreements
Personal Promissory Note Template: Repayment Terms & Default
Use our free Personal Promissory Note template to clearly document a personal promise to repay money, including principal, interest, repayment terms, and default provisions. Customize, download, and print in minutes.
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.