Free Promissory Note Template For Personal Loan

There are 2 types of promissory notes secured and unsecured.

Free promissory note template for personal loan. In this legal document one party promises to pay another involved party specific sum of money on mentioned time date or on demand. Promissory notes are negotiable instruments that are saleable and unconditional and are used in business transactions around the world. Promissory note for personal loans between friends and family members promissory notes provide a paper trail to the irs and serve as a written record of a legitimate monthly loan payment between the borrower and the lender in an intra family loan. Unsecured promissory note vs.

It is one of the safest ways to perform any financial transactions. A promissory note or promise to pay is a note that details money borrowed from a lender and the repayment structurethe document holds the borrower accountable for paying back the money plus interest if any. Therefore to help business owners save time promissory note templates are available on the web for free. A personal loan is an unsecured loan where the borrower does not need to give any security or asset to guarantee repayment of the loan.

This unsecured loan is granted on the basis of the persons integrity and ability to pay. They often look identical and include most of the same things you would expect from a promissory note. Whether you are a lender or a borrower of a loan its important to understand the difference between what makes a promissory note secured versus unsecured. This loan does have higher interest rate than other loans.

This sample promissory note also available in microsoft word pdf and plain text downloadable files spells out how and when you are to be paid and what happens if the borrower doesnt repay the loan. Scroll to the bottom for a blank repayment schedule that you can fill in. This is because it is a legal agreement that offers easy and complete protection for both parties. First you need to decide if a secured promissory note is the correct document required for your needs.

It may also be called a personal loan agreement. Use the following table below to see whether or not a secured promissory note is needed for your situation. Free or downloadable promissory note templates are customizable to suit any personal agreement. One can use promissory note template word when giving away money to a family member or any other person for short period of time.