Back to top
Promissory Note Fill out the template

Promissory Note

Last revision
Last revision 10/11/2018
Formats
Formats Word and PDF
Size
Size 2 to 3 pages
Fill out the template

About the template

Last revision: 10/11/2018

Size: 2 to 3 pages

Available formats: Word and PDF

Fill out the template

Promissory Note

A promissory note is a legal instrument, in which one party (who is the borrower) promises in writing to pay a determinate sum of money to the other (the lender), either at a determinable time in future or on the demand of the lender, under certain agreed terms and conditions. The note is a debt instrument issued to the lender to show the indebtedness of the borrower.

A promissory note contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, the date of repayment, the security (if any) etc.

A Loan Agreement is also similar to the promissory, however, it is more complex than the promissory note and it is usually used in situations that involve a substantial amount of money.

 

How to use the document

This document can be used for short term financing - for example, when a company buys many products from its creditors, it may issue a promissory note to the creditors and pay the price for the products at a later date. Also, a party may collect loan from the bank and issue the promissory note to the bank.

The document should be signed by both parties and issued to the lender(s). If any of the parties is a company, the company seal should be affixed on the document and either 2 (two) directors or 1 (one) director and 1 (one) company secretary must sign the document. If any of the parties is an individual, the party should sign and given to a witness to fill out his/her particulars and sign the document.

The lender(s) must return the promissory note to the borrower(s) once the issuer repays the loan or the money owed.

Applicable laws

The note is a bill of exchange, so the Bill of Exchange Act is the applicable law.

 

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

Fill out the template

How does it work?

1. Choose this template

Start by clicking on "Fill out the template"

1 / Choose this template

2. Complete the document

Answer a few questions and your document is created automatically.

2 / Complete the document

3. Save - Print

Your document is ready! You will receive it in Word and PDF formats. You will be able to modify it.

3 / Save - Print