Promissory Note Generator

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Promissory Note

For value received, [Borrower] ("Borrower") promises to pay [Lender] ("Lender") the principal sum of $_______________, together with interest as set out below.

1. Interest

This Note does not bear interest (0% per year).

2. Repayment

Borrower will repay the full principal and all accrued interest in a single payment on _______________.

Borrower may prepay all or part of the principal at any time without penalty.

3. Default

If Borrower fails to pay any amount when due and does not cure the failure within a reasonable time after written notice, Lender may declare the entire unpaid balance immediately due and payable.

4. Governing Law

This Note is governed by the laws of the State of [State]. Interest rates are limited by state usury law; a rate above the legal maximum for your state and loan type may be unenforceable or unlawful.

5. Date

Signed on _______________.

This is a general template, not legal advice. Review it, adapt it to your situation and jurisdiction, and consult a licensed attorney before relying on it.

How this template is built

The template builds a standard unsecured promissory note — the promise to pay, an interest clause (stated rate or an explicit 0%), a repayment clause that changes with the mode you pick (lump sum, installments, or on demand), penalty-free prepayment, a default/acceleration clause, and governing law — from your inputs. It does not compute an amortization schedule or verify your state's usury cap; the interest and governing-law sections point to state usury law rather than assuming a maximum.

Put a loan in writing: enter the lender, borrower, principal, interest, and repayment terms, watch the note assemble in a live preview, and download a PDF — all in your browser. For personal loans, seller financing, or a small business advance.

How to write a promissory note

Enter the lender and borrower names and the principal amount.
Set the annual interest rate (or leave it at 0%).
Choose the repayment style — lump sum by a date, monthly installments, or on demand — and fill in the matching detail.
Set the date and governing state, review the preview, and Download PDF.

What the note contains

It’s a complete, readable unsecured note: the core promise to pay, an interest clause (your stated rate, or an honest “does not bear interest” for a 0% loan), a repayment clause whose wording matches the mode you chose, penalty-free prepayment, a default clause that lets the lender accelerate the balance after an uncured missed payment, and governing law.

Mind the usury cap

The one number to get right is the interest rate. Every state caps the legal rate for a given type of loan (the usury limit), and a rate above it can render the interest — occasionally the entire note — unenforceable or unlawful. The generator will happily produce whatever rate you type, and it flags this in the note itself, but it can’t know your state’s current cap. Check it before you settle on a rate. For a larger loan, consider notarizing the signed note and, if the loan is secured by property, get an attorney — this template is unsecured and general, not tailored legal advice.

Private by design

The note is built and rendered to PDF on your device. The names, loan amount, and repayment terms are never uploaded or stored.

Frequently asked questions

What is a promissory note?

A promissory note is a written promise by a borrower to repay a specific sum to a lender, on stated terms. It's simpler than a full loan agreement and is common for personal loans between family or friends, seller financing, and small business loans. Putting the loan in writing turns a vague understanding into a documented, enforceable promise.

Can I charge interest on a personal loan?

Usually yes, but every state sets a maximum legal rate (its usury limit), and charging above it can make the interest — sometimes the whole note — unenforceable or even unlawful. The generator lets you set any rate and repeatedly flags the usury issue; check your state's limit for your type of loan before choosing one. A 0% note is also a valid option the tool supports.

What repayment options does it support?

Three: a single lump sum by a set date, fixed monthly installments, or repayment on demand. Pick the one that matches your actual agreement — the note's repayment clause changes wording to match, and it always allows penalty-free prepayment.

Does a promissory note need to be notarized or witnessed?

A promissory note is generally valid once signed by the borrower, but notarization or a witness makes it much easier to prove later and is sometimes required for larger or secured loans. For a significant amount, notarizing is cheap insurance. Requirements vary by state and loan type.

Is my information uploaded?

No. The note is assembled and the PDF generated on your device. The names, loan amount, and terms never leave your browser or reach a server.

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