Promissory Note Generator
Write down a personal or family loan: who borrowed how much, the interest (if any), and how it will be repaid. Choose one lump-sum payment or equal installments with a payment schedule, add collateral or a co-signer, and download a free PDF in English or Spanish. It runs in your browser.
Check your state's interest-rate limits.
States cap the interest a lender may charge on many loans, and the limits differ. This tool does not check your rate against any state's limit. It is a self-help template, not legal advice. RecordingLaw.com is not a law firm.
Still blank (these print as blanks you can fill in by hand):
- Borrower’s name
- Lender’s name
- Amount borrowed
- First payment date
Everything runs in your browser. Nothing you type is sent to or stored on our server.
Promissory Note
Principal amount: $[AMOUNT] Date: [DATE]
1. Promise to Pay
For value received, [BORROWER] (the “Borrower”) promises to pay [LENDER] (the “Lender”) the principal sum of $[AMOUNT], together with any interest stated below. Payments will be made at the Lender’s address below or any other place the Lender designates in writing.
2. Interest
This note bears no interest.
3. Repayment
The Borrower will repay this note in 12 monthly payments of $[AMOUNT] each, beginning on [FIRST PAYMENT DATE], with any remaining balance due with the final payment. A payment schedule is attached for reference; if it differs from this paragraph, this paragraph controls.
4. Prepayment
The Borrower may prepay all or part of this note at any time without penalty. Prepayments apply first to accrued interest and then to principal.
5. Default and Acceleration
If the Borrower fails to make any payment within 30 days after it is due, the Lender may, by written notice to the Borrower, declare the entire unpaid principal and accrued interest immediately due.
6. Collection Costs
If the Lender must take action to collect this note after default, the Borrower will pay the Lender’s reasonable collection costs, including reasonable attorney’s fees, to the extent permitted by law.
7. Security
This note is unsecured.
8. Other Terms
If any provision of this note is found unenforceable, the rest of the note remains in effect. The Lender’s delay in exercising a right is not a waiver of it. Any change to this note must be in writing and signed by the Borrower and the Lender.
BORROWER
Signature: ______________________________ Date: ____________
Printed name: ______________________________
Address: ______________________________
LENDER (acknowledging the terms)
Signature: ______________________________ Date: ____________
Printed name: ______________________________
Address: ______________________________
Before you sign
Interest limits: many states cap the interest rate a lender may charge (usury laws), and the caps, exceptions, and penalties for exceeding them differ by state and by type of loan. This generator does not check your rate against any state’s limit. Look up your state’s law, or ask a lawyer, before you choose a rate. Late charges can be limited by state law too.
Security: if the note is secured, the security paragraph describes the collateral. Under the Uniform Commercial Code model text, a security interest in personal property is enforceable against the borrower when, among other things, the borrower has signed (authenticated) a security agreement that describes the collateral (UCC 9-203(b)). Protecting the lender’s priority against other creditors usually requires filing a financing statement or another perfection step (UCC 9-310). This tool files nothing.
This tool does not create a mortgage or any lien on real estate.
The Uniform Commercial Code is in effect in some version in nearly all U.S. jurisdictions, but states rarely adopt uniform laws word for word (Cornell LII). Check your state’s version and its filing office for the details that apply to you.
The payment schedule is arithmetic on the numbers you entered: level payments rounded to the cent, the annual rate divided evenly across payment periods, interest starting one payment period before the first payment (or on the note date if that is later, prorated by days), and a final payment adjusted for rounding. Keep a record of every payment actually received.
Sign the note and give the lender the original. The borrower should keep a copy.
What a Promissory Note Is
A promissory note is the borrower's written promise to repay a loan on stated terms. The note this tool produces sets out the amount borrowed, the interest rate (or that there is none), the repayment schedule, what happens if a payment is late or missed, and whether the loan is secured. The borrower signs it, and the lender keeps the original.
Notes are governed by state law. The Uniform Commercial Code is in effect in some version in nearly all U.S. jurisdictions, though states rarely adopt uniform laws word for word (Cornell LII). In the UCC model text, a promise to pay a fixed amount of money that meets certain further conditions, such as being payable to bearer or to order, is a "negotiable instrument" (UCC 3-104). This generator is built as a plain loan agreement between the two of you; it does not aim to make the note negotiable.
Interest Rates and State Limits
You choose the rate. The generator applies it as simple annual interest on the unpaid principal and, for installment notes, builds a level-payment schedule. What it will not do is tell you a rate is allowed. Usury laws, and the exceptions to them, differ from state to state and by type of lender and loan, so read your state's statute or talk to a lawyer before you lend at interest. Late charges can be limited by state law too, which is why the late-fee clause says "to the extent permitted by law."
Secured Notes and Collateral
A secured note adds a security interest in specific personal property. Under the UCC model text, a security interest is enforceable against the borrower only if value has been given, the borrower has rights in the collateral, and, in the usual case, the borrower has authenticated a security agreement that describes the collateral (UCC 9-203(b)). That is why the collateral description is a required field when you choose a secured note.
Enforceability against the borrower is not the same as priority over other creditors. The general UCC rule is that a financing statement must be filed to perfect a security interest, with listed exceptions (UCC 9-310). This tool files nothing. Your state's version of the UCC and its filing office control the details.
What This Note Does Not Do
- It does not check your interest rate or late fee against any state's limit.
- It does not create a mortgage, deed of trust, or any lien on real estate.
- It does not file a financing statement or note a lien on a vehicle title.
- It does not make any tax, securities, or consumer-lending disclosures a professional lender may owe.
If a borrower stops paying, our debt collection laws by state guide and the statute of limitations on debt page explain what comes next.
Disclaimer: General legal information, not legal advice. For a large loan, a loan secured by real estate, or any loan made as a business, consult a licensed attorney.
Frequently Asked Questions
What interest rate can I charge?
That depends on your state and the type of loan. Many states cap interest rates, with different limits, exceptions, and penalties. This generator uses the rate you enter and does not check it against any state’s limit, so look up your state’s law or ask a lawyer before you choose one.
What is the difference between a secured and an unsecured note?
An unsecured note is only a promise to pay. A secured note also gives the lender a security interest in specific property, the collateral, that the lender may pursue after a default under the law that applies. This generator supports personal-property collateral such as a vehicle or equipment. It does not create a mortgage or lien on real estate.
Does a promissory note need to be notarized?
This generator lets you add witness and notary space if you want them. Whether your note needs either depends on how you plan to use it and on your state’s law, which we have not checked for you.
How is the installment payment calculated?
As a level payment: the annual rate is divided evenly across the payment periods, each payment covers that period’s interest first and the rest reduces principal, and the final payment is adjusted for rounding so the balance ends at zero. The full schedule is attached to the note for reference.
Is anything I type saved?
No. The note is built in your browser and the PDF is created on your device. Nothing you type is sent to or stored on our server.
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