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Lend or borrow money with this simple form.
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).
Use this promissory note (IOU) form to lend or borrow money. You can choose from one of the four types of loans accessible within this form:
- Installment loan without interest. The borrower pays off the loan in equal monthly or annual payments over a set time, usually a number of years.
- Installment loan with interest (amortized). The borrower pays off the loan in equal payments over a set time, usually a number of years, and each payment is applied partly to interest and partly to principal.
- Lump-sum payment. The borrower pays off the money borrowed, plus interest, in one single payment.
- Interest-only payments (balloon payment). The borrower makes monthly payments of interest only, and then pays off the entire principal in one lump sum.
If you are securing the loan with personal property, make sure to print and use the "Security Agreement for Borrowing Money" which is included with this form. (Note that you should not use this form if you are securing your loan with real estate).
This promissory note accommodates up to four borrowers.
Important to Know:
- If the lender and borrower decide to change the terms of a promissory note, use Nolo's Agreement to Modify Promissory Note.
- Once the loan has been repaid in full, consider using Nolo's Release of Promissory Note.