Promissory Note for Personal Loan (Installment Payments With Interest)

Use this IOU form when lending money that will be repaid over time and with interest. Designed especially for use between family and friends, this promissory note sheds the legalese and simply lays out the terms of the loan.

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Promissory Note

Borrower

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Label Contract Text
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Lender

Loan

In return for a loan Borrower has received from Lender, Borrower promises to pay to Lender the amount of $ (principal), plus interest on unpaid principal at the rate of % per year from the date this note is signed until it is paid in full.  If there is more than one borrower, they agree to be jointly and severally liable.

Monthly Payments

Borrower will pay back the loan in monthly installments, which include principal and interest, of not less than $ until the principal and interest are paid in full. Payments will be due on the  day of each month, beginning on . Borrower will send all payments to 

Prepayments

Borrower may make extra payments of principal, in addition to the monthly installment payments, at any time. Borrower will identify any such payments, in writing, as prepayments of principal. Lender will use any prepayments to reduce the amount of principal owed by Borrower. Prepayments will not change the amount or due date of any future installment payments.

Late Payments

If any installment payment due under this note is not received by Lender within  days of its due date, Borrower will pay a late fee of five percent of the amount of the monthly payment. The late fee will be due immediately.

If any installment payment is not received by Lender within  days of its due date, Lender may demand, in writing, that Borrower repay the entire amount of unpaid principal immediately. After receiving Lender's demand, Borrower will immediately pay the entire unpaid principal.

Security

Alternate Selection
Label Contract Text
unsecured This is an unsecured note.
secured Until the principal and interest owed under this note are paid in full, this note will be secured by a security agreement and Uniform Commercial Code Financing Statement giving Lender a security interest in certain equipment, fixtures, inventory, or other assets, as described in the security agreement.

Attorneys' Fees

If Lender sues Borrower to collect on this note, and wins, Borrower agrees to pay Lender's attorneys' fees in an amount the court finds to be fair and reasonable.

Entire Agreement

This note represents the entire agreement between Borrower and Lender. Any modifications must be in writing and signed by both Borrower and Lender.

Keep Together

Terminology

The term Borrower refers to one or more borrowers. The term Lender refers to more than one lender and to any person who legally holds this note, including a buyer in due course.

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Label Contract Text
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Borrower's Signature

Signature: ________________________________________
Date: _____________________________________________

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Borrowers' Signatures

Signature: ________________________________________
Date: _____________________________________________


Signature: ________________________________________
Date: _____________________________________________

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Borrowers' Signatures

Signature: ________________________________________
Date: _____________________________________________


Signature: ________________________________________
Date: _____________________________________________
 

Signature: ________________________________________
Date: _____________________________________________

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Borrowers' Signatures

Signature: ________________________________________
Date: _____________________________________________
 

Signature: ________________________________________
Date: _____________________________________________
 

Signature: ________________________________________
Date: _____________________________________________
 

Signature: ________________________________________
Date: _____________________________________________

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Certificate of Acknowledgment of Notary Public


State of _______________________________        )

                                                                                    )           ss

County of _____________________________         )

 

 

On _______________ before me, _________________________________________ (here insert name and title of the officer) personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of ___________ that the foregoing paragraph is true and correct.

                                                            WITNESS my hand and official seal.

                                                            _____________________________________

                                                            Notary Public for the State of ______________

                                                            My commission expires __________________

[NOTARY SEAL]

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