A detailed guide to fill a promissory note template
Promissory notes are easy to understand even without any prior legal knowledge. Here is a step-by-step guide to filling a promissory note template.
Step 1: Lender and borrower
Enter the day month and year followed by the name of the borrower and lender. Next, go on to mention the mailing addresses of both parties.
Step 2: Payments
Enter the due date for the loan repayment by mentioning the day, month and year. Next, you need to choose whether the loan is going to be repaid lump-sum or in installments. Check the desired option. If you go in for the latter option, you need to fill in a late fee if a borrower fails to make the repayment on time.
Step 3: Secure or Unsecure
If you are a lender, it is recommended that you select Secure in the promissory note. Pawn-shop owners mainly use this method. If you are planning on loaning money to an individual or business, choose Unsecure . Note that you need to trust your borrower enough if you are issuing an unsecure promissory note.
Step 4: Co-signer
In the event that the original borrower fails to repay the loan, a co-signer must shoulder the responsibility of making the repayment. In the absence of collaterals, co-signers possess an Unsecure promissory note. Borrowers who place a collateral need not have a co-signer.
Step 5: Governing law
Fill in the state whose jurisdiction your note falls under. You must also enter the condition of the lending individual or business.
Step 6: Signatures
The promissory note must be authorised with a signature by the lender, the borrower as well as a witness. If there is a co-signer, the said individual must be present as well. Ensure that the involved parties fill in the form with their names, date and their signatures.