Everything You Need To Know About Unsecured Promissory Note Templates

How to Make an Unsecured Promissory Note (Free Templates)
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Everything You Need to Know About Unsecured Promissory Note Templates

What is an Unsecured Promissory Note?

An unsecured promissory note (PN) is a written document that outlines the terms of a loan between two parties. The note is usually signed by both parties and contains the amount of money borrowed, the interest rate charged, and the payment schedule for repayment. It also includes any other information related to the loan, such as the purpose of the loan, any collateral used, and any other fees or conditions associated with the loan. The note is legally binding, and if not paid in full, the lender can take action to collect the amount due.

Why Use an Unsecured Promissory Note Template?

Using a template for an unsecured promissory note can save time and money. It ensures that all the important information is included in the document, and it ensures that the document is legally binding. The template also ensures that all parties involved in the loan understand the terms of the agreement. It can also serve as a reference for the lender in the event that the borrower fails to make payments on time.

What Should be Included in an Unsecured Promissory Note Template?

An unsecured promissory note template should include the names of the parties involved, the amount of the loan, the interest rate and payment schedule, and any other information related to the loan. It should also include the signature of both parties and any other required information. The template should be written in clear, concise language and should include all relevant terms and conditions.

How to Use an Unsecured Promissory Note Template?

Using an unsecured promissory note template is easy. First, you will need to fill in the information related to the loan, such as the parties involved, the amount of the loan, the interest rate and payment schedule. Once the information has been filled in, the template can be printed or saved as a PDF file. Both parties will need to sign the document to make it legally binding.

3 Sample Unsecured Promissory Note Templates

Template 1

This is a sample unsecured promissory note template for a loan of $1,000 between John Doe and Jane Doe. The loan is for a period of one year, with an interest rate of 5% per annum. The loan must be repaid in full by the end of the loan period. The payment schedule is as follows:

  • Monthly payments of $83.33 beginning on the 1st of each month.
  • The final payment of $83.33 due on the 1st of the 13th month.

Template 2

This is a sample unsecured promissory note template for a loan of $3,000 between John Doe and Jane Doe. The loan is for a period of two years, with an interest rate of 6% per annum. The loan must be repaid in full by the end of the loan period. The payment schedule is as follows:

  • Monthly payments of $125.00 beginning on the 1st of each month.
  • The final payment of $125.00 due on the 1st of the 25th month.

Template 3

This is a sample unsecured promissory note template for a loan of $5,000 between John Doe and Jane Doe. The loan is for a period of three years, with an interest rate of 7% per annum. The loan must be repaid in full by the end of the loan period. The payment schedule is as follows:

  • Monthly payments of $208.33 beginning on the 1st of each month.
  • The final payment of $208.33 due on the 1st of the 37th month.

Conclusion

Using an unsecured promissory note template is a great way to ensure that all the important information is included in the document. It can save time and money, and it can help ensure that all parties involved in the loan understand the terms of the agreement. The template should be written in clear, concise language, and it should include all relevant terms and conditions. It can also serve as a reference for the lender in the event that the borrower fails to make payments on time.