Loan and Promissory Note Templates

Lending money to a friend, a family member or a small business is common, and so are disputes about whether it was a loan, how much is owed and when. A promissory note records the promise to repay in a form the law recognizes, with the principal, the interest rate, the repayment schedule and what happens on default. Interest rules are set by law: some jurisdictions require the rate to be stated as an annual rate, and charging too much interest can be unlawful.

The templates here are written to the lending and interest rules of a named jurisdiction. Each one states the amounts and dates precisely, calculates interest in the way the law expects, deals with prepayment, late payment, default and any security, and includes signature and witness blocks. Guidance notes explain each clause and when independent legal advice is recommended.

Give the borrower a signed copy, keep the original somewhere safe, and record every payment as it is made.