Promissory Note Templates for MS Word

Borrowing money from some person or organization needs to be done carefully. All procedures must be followed so that no issues are faced later on. All points related to borrowing the money need to be stated clearly and the document needs to be signed.

Different documents can be used here. You should choose the one suitable for your needs. A promissory note can be considered for instance.

What is a promissory note?

This is a written agreement by a party that states they will pay another party a certain amount of cash. It includes the note’s maker paying the note’s payee. The money can be paid on demand or even at a certain date later on.

What does a promissory note do?

The note often includes the terms of the borrowing agreement. Through the note, one can know about the debt amount, payment schedule, the exact interest rate, the maturity date, etc.

How to create a promissory note?

When making a promissory note all the terms must be included in it clearly so that no issue gets raised later on. The following points can be kept in mind when making the note:

Proper formal template:

The promissory note must be in writing. Do not agree to an oral promise that the money will be paid. A formal document should be present. You can type this in Microsoft Word.

Format of document:

The promissory note should have a professional structure. Include a heading on the document. It can be a “Promissory Note”. After this, you will include the details about the note.

Details about the amount:

It is important to include the total amount. You can do this in numbers and words. After this state the date and the place that the note has been signed.

Information to include:

You can then include the details about the payment. Start by stating the name of the person in full who needs to pay the amount. This can be done in paragraph format. State who the person needs to pay the money to. It can be to a company or an individual. Include the amount that needs to be paid. After this, you can have a paragraph that states how the repayment will be made.

The way the payment will occur and the interest rate must be stated. State when the payment will occur till the debt has been completely paid.

For instance, the agreement may involve paying a certain amount every month on a specified date. It is important to include these points. After this another paragraph can be included where the person agrees to the agreement and on what date this has occurred.

Signatures:

It is very important to include signatures so that the document can be valid and so that it can be used later on in case needed. Without signatures, the promissory note will not be applicable. The signature of the borrower needs to be present. Include his/her name and address as well. The signatures and name and address of the person or company who is lending the cash need to be present as well.

A promissory note is a security

A promissory note is important as it gives one the security required when they are loaning money to some other person or company. The note lets one know of the structure present for repayment. All the details about the repayment procedure will be presented clearly on the note. Both parties will know what is involved and how repayment will occur so that this can be followed.

The note will keep the lender safe from default. The borrower can remain protected from unscrupulous lending features. The note is helpful and can be employed by a huge company that is lending cash or even a single person lending money to someone so that they can be protected at the time that they loan some other individual money.

Some legal issues may arise concerning the repayment and if this occurs the promissory note can be consulted to see which party is agreeing to the rules and which one is ignoring them. The promissory note can therefore be used legally.

Preview and Details of Template