Summary
A promissory note is a written promise to pay money to someone. Its primary function is to serve as written evidence of the amount of a debt and the terms under which it will be repaid, including the rate of interest (if any). This helps both the lender and borrower know exactly what the expectations and plans for repayment are.
This promissory note allows for repayment without interest. People often make no-interest loans to family or friends when the dollar amount of the loan is relatively low.
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