A promissory note is a legally binding document in which a borrower pledges to pay a lender a certain amount of money on demand or within a certain time frame.
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The note contains information such as the amount lent (the principal), interest rates, the due date, the date and location of the note’s issuance, and signatures.
Promissory Letter Sample
Full, legal name of Payee
Full, legal name of Promisor
Total Amount of Loan
Final Due Date for Repayment
I, [Payee Name], borrowed [$1,000] from [Promisor Name] on Loan Date. By signing this agreement both Payee and Promisor acknowledge that Payee will pay back Promisor using the following payment schedule.
Payee agrees to repay Promisor with a personal check for [$100] on the first of each month for 10 months beginning with August 1, 20__. The last payment will be made May 1, 20__, at which time the loan will be fully repaid.
Payee further agrees to pay a [$35] per week late charge for every week that payment is delayed after the first of the month.
This $35 late charge may be prorated as a [$5] per day charge for each day that the payment is late for segments of time shorter than seven days.
Both Payee and Promisor agree to the payment agreement defined above.
Signature of Payee with Date
Signature of Promisor with Date
Signature of Witness or Notary with Date