Promissory Note for Personal Loan (Installment Payments Without Interest)

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.

Important to Know

• If the lender and borrower decide to change the terms of a promissory note, use " Agreement to Modify Promissory Note."
• If the borrower does not repay you according to the terms of your promissory note, considering using " Demand for Overdue Repayment on Promissory Note."