Free Promissory Note Template Word Document

However it is less formal than a loan contract.

Free promissory note template word document. The benefit of a promissory note is that it can be issued by anyone individuals as well as financial institutions. That being said while creating the document it is essential to spell out the repayment agreement amount of loan and interest in the promissory note for an authentic legal proof. A promissory note or promise to pay is a note that details money borrowed from a lender and the repayment structure the document holds the borrower accountable for paying back the money plus interest if any. This type of note carries less risk to the lender and usually allows the borrower to pay a lesser interest rate. A promissory note template is a legal document containing a written promise to pay a specific amount of money to a certain individual at a particular date as well as agreed terms and conditions.

A promissory note details the total quantity of money or capital that is loaned payment timeline and interest rate charged. A promissory note is actually an agreement between issuer and borrower for a certain amount to be borrowed and returned on demand or at a specific date schedule in full or by parts. Promissory notes do not mention recourse in event of a violation of the agreement or borrower default. A promissory note is primarily used as a binding document between the lender the borrower and the law. Step 1 download the selected document.

A promissory note is an agreement to borrow money from someone else stating specific time periods for being paid back along with an interest rate. There are many free promissory note templates available on the web which just require you to edit and use. A promissory note template is also demonstrated as a financial instrument which served as a biding between two or more parties. One can use promissory note template word when giving away money to a family member or any other person for short period of time. In this legal document one party promises to pay another involved party specific sum of money on mentioned time date or on demand.

These word templates are useful when parties involving in a loan transaction don t know how to document it for later use or reference. There are 2 types of promissory notes secured and unsecured. Objectives of a promissory note. Free promissory note template adobe pdf microsoft word. But it is wise to work with a lawyer as they can help.

One of the risks. A promissory note is as legal and binding as any other debt instrument. Unsecured promissory note offers no guarantee for the lender to recoup the loaned money. First it is used as documentation that the borrower and the lender are in agreement and that the lender is willing to go by the agreement. Download free promissory note templates.