Although oral promise to pay made by the person borrowing the money can be are enforceable in a court of law it tends to be more difficult if the promise is not made in writing.

Always make sure you comply with the laws regarding promissory notes in your State. Some states require that a promissory note be notarized, others require that it be witnessed and some do not require witnessing or a notary. The Promissory Note Template below allows all three options.

Here's a free promissory note template. Just copy and paste it to your word processor and make the corrections and changes that apply to your particular needs.

Amount: $_____________________                                Date: _____/_____/_____

FOR VALUE RECEIVED, I _____________________ (borrower's name), resident of _______ _______________________________________ (Borrower's Address) promise to pay to the order of ____________________________________ (Lender’s name) or the HOLDER of this NOTE the sum of $__________________ together with interest thereon at the rate of ______% annually.

This Note shall be FULLY paid on _____/_____/_____. -OR- Borrower will make monthly payments on the amount of $___________________ beginning one month from date hereof and thereafter on the same day of each and every subsequent month until the debt is fully paid.

If a payment due is not made within _____ days of the time set forth herein, an additional late fee in the amount of $____________, must be paid by the Borrower.

Payments due under this Note shall be made at the following address: ___________________________________________________________________________.

Maker gives the following property as collateral security for the payment of this note: ___________________________________________________________________________.

All payments of this note shall primarily be applied to interest and thereafter to the principal loan amount.

This note may be prepaid at any time without notice, in whole or in part, and without incurring any penalty or bonus.

Any change of the borrower's name or address must be promptly disclosed to the lender.

This note shall, at the option of any holder, be immediately due and payable upon the occurrence of the death, dissolution, insolvency or liquidation of the undersigned, or any endorser, guarantor or surety to this note.

Borrower agrees to pay all collection agency costs, court costs, and legal fees, incurred or paid by the Lender in the collection and/or enforcement of this Promissory Note.

This note is to be governed by the laws of the State of __________________________.

Borrower, intending to be legally bound, has signed this Promissory Note on this ______ day of ________________________ , 20 ____.

___________________________________
Borrower’s signature

___________________________________
Witness’ signature

Subscribed and sworn to before me on this _______ day of ________________ , 20_____.