A Simple Interest Promissory Note Template is a legally binding document that outlines the terms of a loan between a lender and a borrower. The template typically includes the following information:
The names and addresses of the lender and borrower
The template should be clear, concise, and easy to understand. It should also be professionally formatted and designed to convey a sense of trust and professionalism.
Design Elements
The design of a Simple Interest Promissory Note Template is just as important as the content. A well-designed template will make a good impression on the borrower and help to build trust.
Here are some of the design elements that you should consider when creating your template:
Use a professional font. Arial, Calibri, and Times New Roman are all good choices.
Content
The content of a Simple Interest Promissory Note Template should be clear, concise, and easy to understand. The template should include all of the necessary information to make the loan agreement legally binding.
Here is a sample Simple Interest Promissory Note Template:
Loan Amount: $[Loan Amount]
Interest Rate: [Interest Rate]% per annum
Repayment Schedule: [Repayment Schedule]
Due Date: [Due Date]
Default: In the event of default, the borrower shall be liable for all costs and expenses incurred by the lender in collecting the outstanding balance of the loan, including but not limited to attorney’s fees and court costs.
This Promissory Note is made and entered into on this [Date] day of [Month], [Year], by and between [Lender’s Name], a [Lender’s Business Type] with its principal place of business at [Lender’s Address], hereinafter referred to as the “Lender,” and [Borrower’s Name], an individual residing at [Borrower’s Address], hereinafter referred to as the “Borrower.”
Whereas, the Lender has agreed to loan the Borrower the sum of $[Loan Amount] for a period of [Loan Term] months, at an interest rate of [Interest Rate]% per annum, payable in accordance with the terms and conditions set forth herein; and
Whereas, the Borrower has agreed to repay the Loan Amount, together with interest thereon, in accordance with the terms and conditions set forth herein.
Now, Therefore, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
1. Loan Amount: The Lender hereby loans to the Borrower the sum of $[Loan Amount].
2. Interest Rate: The Borrower shall pay interest on the outstanding balance of the Loan Amount at the rate of [Interest Rate]% per annum. Interest shall be calculated on a daily basis and shall be payable on [Payment Frequency].
3. Repayment Schedule: The Borrower shall repay the Loan Amount, together with accrued interest thereon, in [Number] equal monthly installments of $[Installment Amount] each. The first installment shall be due and payable on [First Payment Date].
4. Default: In the event that the Borrower defaults in the payment of any installment of principal or interest due hereunder, or fails to comply with any of the other terms and conditions of this Promissory Note, the Lender shall have the right, at its option, to declare the entire outstanding balance of the Loan Amount, together with accrued interest thereon, due and payable immediately.
5. Governing Law: This Promissory Note shall be governed by and construed in accordance with the laws of the State of [State].
IN WITNESS WHEREOF, the parties have executed this Promissory Note as of the date first written above.
[Lender’s Signature]
[Lender’s Printed Name]
[Borrower’s Signature]
[Borrower’s Printed Name]
Additional Considerations
When creating a Simple Interest Promissory Note Template, it is important to consider the following:
The template should be tailored to the specific needs of the lender and borrower.
By following these guidelines, you can create a Simple Interest Promissory Note Template that is both professional and legally sound.
