subject: Simple Promissory Note Form [print this page] A promissory note is simply a document containing a promise to repay a stated sum of money either on a fixed date, in installments or on demand by the lender. Most of us have found ourselves in a situation where borrowing is the best option. This situation will require careful planning for the requisitions and agreements which will act as guardians. Each loan agreement is governed by a promissory note. Certain points must be included in every promissory note. These are what constitute a simple promissory note.
When writing a promissory note you should realize that its not a very large sheet with a lot of words which is required. You should also realize that each loan situation will be different therefore your idea of having a standard template that will only be modified slightly can result in denial due to authenticity failure. To avoid all this sits important to understand what a simple promissory note template contains in order to make the points in the agreement as clear as possible.
A simple promissory note form will detail who the lender and the borrower are in the specified transaction. The amount of money that is being transacted, the interest rate that will be applied and any witnesses involved in the finalizing of the deal. The form should further state when the money will be returned and the mode to be used in the return. The simple promissory note form can also contain certain optional information. These will include information detailing how the loan money was given, details regarding prepayment of the loan and how many installments for repayment have been agreed on by the parties involved in the agreement.
The form can also go a step further to detail the benefits that would result from prepaying the loan. Its can also detail the security terms and the consequences the borrower will face in case of default or failure to meet other terms on the promissory note. All this additional information is not compulsory but will help in providing additional security and enable pursuit of legal action in case there are any discrepancies. Simple promissory notes are the easiest to draft. They are also readily available online in different websites. When looking for such forms, its important to ensure that all the factors detailed above are met. Its also advantageous if the optional points are included in the form that you obtain.
