Full Template Text
Copy the usable agreement below, replace every [BRACKET] placeholder, then customize for your situation.
Promissory Note
PROMISSORY NOTE (UNSECURED)
Principal Amount: [Principal Amount]
Date: [Effective Date]
Place of Signing: [Place of Signing]
This Promissory Note (the “Note”) is made as of [Effective Date] (the “Effective Date”),
BY:
[Borrower Name], with a mailing address at [Borrower Address] (the “Borrower”);
IN FAVOR OF:
[Lender Name], with a mailing address at [Lender Address] (the “Lender”).
The Borrower and the Lender may be referred to individually as a “Party” and collectively as the “Parties.”
1. PROMISE TO PAY
For value received, the Borrower unconditionally promises to pay to the order of the Lender the principal sum of [Principal Amount] (the “Principal”), together with interest and any other amounts due under this Note, in accordance with the terms below.
2. INTEREST
Interest accrues on the unpaid Principal from the Effective Date at a fixed rate of [Annual Interest Rate] per year, calculated on the basis of a 365-day year and the actual number of days elapsed. If the Parties agree that no interest will be charged, they will state 0% in this Section.
3. REPAYMENT
The Borrower will repay this Note under the option selected here: [Repayment Option].
(a) Installments. If installments are selected, the Borrower will pay [Number of Installments] consecutive installments of [Installment Amount] each, starting on [First Payment Date] and continuing on the same day of each following month.
(b) Lump Sum. If a lump-sum payment is selected, the Borrower will pay the entire Principal and accrued interest in a single payment on the Maturity Date.
(c) Maturity. In every case, all unpaid Principal, accrued interest and other amounts due are payable in full no later than [Maturity Date] (the “Maturity Date”).
4. PAYMENT METHOD AND APPLICATION
Payments will be made by [Payment Method] to the Lender at the address above or to any other account the Lender designates in writing. A payment is made only when the Lender receives cleared funds. Payments are applied first to late fees, then to accrued interest, and then to Principal, unless applicable law requires a different order.
5. LATE PAYMENTS
If any payment is not received within [Grace Period Days] days after its due date, the Borrower will pay a late fee of [Late Fee] for that payment, but only to the extent permitted by applicable law. Late fees are not interest and do not increase the interest rate under Section 2.
6. PREPAYMENT
The Borrower may prepay all or any part of the Principal at any time without premium or penalty. Partial prepayments are applied to the remaining Principal and do not postpone or reduce later installments unless the Lender agrees in writing.
7. UNSECURED OBLIGATION
This Note is an unsecured obligation of the Borrower. No collateral, mortgage or security interest is granted under this Note. Any security arrangement must be documented in a separate written agreement that complies with applicable law.
8. EVENTS OF DEFAULT
Each of the following is an event of default: (a) the Borrower fails to make any payment when due and does not cure the failure within [Cure Period Days] days after written notice from the Lender; (b) the Borrower becomes insolvent, makes a general assignment for the benefit of creditors, or becomes subject to a bankruptcy or insolvency proceeding; or (c) any statement made by the Borrower in connection with this Note is materially false.
9. ACCELERATION AND REMEDIES
Upon an event of default that is not cured, the Lender may declare the entire unpaid Principal, accrued interest and other amounts under this Note immediately due and payable, by written notice to the Borrower and any Co-Signer, to the extent permitted by law. The Borrower will reimburse the Lender’s reasonable costs of collection, including court costs and attorney fees, where permitted by [Governing Law / Jurisdiction].
10. CO-SIGNER (OPTIONAL)
If a co-signer signs this Note, [Co-Signer Name], with a mailing address at [Co-Signer Address] (the “Co-Signer”), agrees to be jointly and severally liable with the Borrower for all amounts due under this Note. The Lender may demand payment from the Co-Signer without first proceeding against the Borrower, except where applicable law requires otherwise. The Co-Signer confirms having received a copy of this Note and any notice to co-signers required by law before signing. If no co-signer is used, this Section does not apply.
11. USURY AND CONSUMER-CREDIT COMPLIANCE
The Parties intend to comply with all applicable usury, interest-rate and consumer-credit laws. If any interest, fee or charge under this Note would exceed the maximum amount permitted by law, it is automatically reduced to the maximum lawful amount, and any excess already paid will be credited to Principal or refunded to the Borrower. The Lender is responsible for any licensing, disclosure or registration that applies to the Lender’s lending activity.
12. WAIVERS AND NOTICES
To the extent permitted by law, the Borrower and any Co-Signer waive presentment, demand for payment, notice of dishonor and protest. No delay by the Lender in exercising any right is a waiver of that right. Notices must be in writing and sent to the addresses above, or to updated addresses given in writing.
13. GOVERNING LAW
This Note is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have jurisdiction over any dispute arising out of or relating to this Note, unless the Parties agree in writing to mediation first.
14. GENERAL PROVISIONS
(a) Entire Agreement. This Note is the entire agreement between the Parties regarding the loan it evidences and supersedes prior discussions on that subject.
(b) Amendments. Any change to this Note must be in writing and signed by the Borrower, the Lender and any Co-Signer.
(c) Severability. If any provision is held invalid or unenforceable, the remaining provisions remain in effect.
(d) Assignment. The Borrower may not assign this Note. The Lender may assign or transfer this Note with written notice to the Borrower, where permitted by law.
(e) Counterparts and Electronic Signatures. This Note may be signed in counterparts, including by electronic signature, each of which is deemed an original.
IN WITNESS WHEREOF, the Borrower has signed this Promissory Note as of the Effective Date.
BORROWER
Name: [Borrower Name]
Signature: _______________________________
Date: ____________________________________
CO-SIGNER (IF ANY)
Name: [Co-Signer Name]
Signature: _______________________________
Date: ____________________________________
ACKNOWLEDGED AND ACCEPTED BY THE LENDER
Name: [Lender Name]
Signature: _______________________________
Date: ____________________________________
This is a starting template, not legal advice. Have a qualified attorney review it for your jurisdiction and use case before signing.
A promissory note template turns a private loan into a clear, written promise to repay. Whether you are lending money to a friend, a family member, an employee or a small business, a signed note records how much was borrowed, the interest rate, when payments are due and what happens if they stop.
Disclaimer: This template is general information, not legal advice. Usury, consumer-credit and debt-collection rules vary by state and country. Adapt it to your jurisdiction and consult a lawyer before lending significant amounts.
What Is a Promissory Note?
A promissory note is a signed document in which the borrower promises to pay a fixed sum to the lender. This template is an unsecured note: no collateral backs the loan, so the lender relies on the borrower’s promise and, optionally, a co-signer. It supports both installment repayment and a single lump-sum payment at maturity.
If you need more detailed loan terms, use our personal loan agreement template. If you are restructuring an existing debt rather than lending new money, a payment agreement template is often a better fit.
Key Clauses in This Promissory Note Template
- Promise to Pay and Principal — The borrower’s unconditional promise to repay a stated amount.
- Interest Rate — A fixed annual rate, or 0% for an interest-free loan.
- Repayment Schedule — Monthly installments or a lump sum, with a firm maturity date.
- Late Fees and Grace Period — When a payment is late and what it costs.
- Prepayment — The borrower may pay early without penalty.
- Default and Acceleration — Cure period and the lender’s right to call the full balance.
- Optional Co-Signer — A second person who is jointly responsible for repayment.
- Usury Savings Clause — Reduces any excess interest or fee to the legal maximum.
- Governing Law — The jurisdiction whose law applies.
How to Customize This Template
- Check interest limits first — Usury laws and consumer-credit rules may cap rates, restrict fees or require disclosures and licensing for regular lenders.
- Pick one repayment option — Write installments or lump sum in the repayment option field and delete what does not apply.
- Attach an amortization schedule — List each payment, the interest portion and the remaining balance.
- Decide on a co-signer — If you use one, make sure they receive a copy and any notice the law requires.
- Consider security separately — If the loan should be secured by property, use a separate security agreement.
How to E-Sign with WPsigner
Electronic signatures are generally valid and enforceable under the ESIGN Act and UETA in the US and eIDAS in the EU when signers consent, show intent to sign and an audit trail is kept. Negotiable-instrument rules and regulated consumer lending can add extra requirements, so check them for your case.
- Upload — Add your completed promissory note to WPsigner.
- Add fields — Place signature and date fields for the borrower, co-signer and lender.
- Send — Email each signer a secure signing link.
- Track — Follow opens and signatures from your WordPress dashboard.
- Store — Keep the signed PDF and audit trail on your own WordPress site.
Use this promissory note template as a reusable starting point for private loans you send for electronic signature with WPsigner.