Free Promissory Note Templates (Word, PDF)
Legal
by piperjackson
Lending money to family, a friend, or a business goes more smoothly when the terms are written down. This set of 44 promissory note templates helps lenders and borrowers record the loan amount, interest rate, repayment schedule, and what happens if a payment is missed.
The templates are editable in Word and ready as PDFs for signing and safekeeping. Because states have usury laws that cap interest and shape enforceability, confirm the rules where you live before finalizing the note. Fill in the names, dates, and figures, keep a signed copy each, and choose the version that matches whether your loan is secured or unsecured.
When to use this Promissory Note template
- A small business owner lending $20,000 to a trusted partner needs a clear repayment plan with fixed monthly payments and a 5% interest cap to comply with local laws.
- Parents lending their adult child $15,000 for a down payment on a home want to document the loan terms, including a grace period for missed payments before penalties apply.
- A landlord offering a tenant a $10,000 interest-free loan to cover security deposit shortfalls needs a legally sound agreement specifying repayment milestones tied to lease renewals.
- A startup founder borrowing $50,000 from investors requires a promissory note outlining equity conversion terms if payments exceed 30 days late, with state-specific usury protections.
Which format should I download?
Choose Word if you need to customize terms (e.g., adjusting interest rates or adding collateral clauses) before finalizing the agreement. Use PDF for ready-to-sign, legally binding versions—ideal for lenders who want to preserve the exact terms without further edits. PDFs are also better for secure storage or sharing via e-signature platforms like DocuSign. Since both formats are included, start with Word for drafting and convert to PDF once terms are finalized, especially in states with strict usury laws where precision matters.
Choose from 44 Promissory Note Templates
How to use this Promissory Note template
Do these templates automatically include state-specific usury laws or interest rate limits?
These templates provide fields for interest rates and repayment terms, but they do not replace legal review. Usury laws vary by state—some cap rates as low as 6% for personal loans—so verify compliance with a local attorney or use templates labeled for your state (e.g., ‘California Promissory Note’). Include a clause noting ‘maximum legal interest rate per [State] law’ to cover uncertainties.
Can I add a co-signer or collateral clause to a promissory note template?
Yes, most templates include optional sections for co-signers or collateral (e.g., property, vehicles). If not, use the Word version to insert clauses like ‘Co-signer agrees to repay if Borrower defaults’ or ‘Collateral: [describe asset], valued at [amount], secures this loan.’ Consult a lawyer to ensure the collateral description aligns with your state’s lien laws. Avoid vague language like ‘all personal belongings.’
What should I do if the borrower misses a payment but the note doesn’t specify late fees?
Include a ‘Late Payment’ section in your Word template with terms like ‘5% of the missed payment as a late fee, capped at $50, with a 15-day grace period.’ If using a PDF template, attach an amendment or negotiate terms in writing. Without clear terms, you may lose leverage in collections. Some states limit late fees—check local laws before enforcing penalties. Document all missed payments in writing to protect your rights.
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