Promissory Note Template

A borrower's written promise to repay a loan.

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Full: detailed and comprehensive, with optional clauses you can switch on.

This template is not legal advice; consult a licensed attorney in your state. Interest rate limits (usury laws) differ by state. State law varies. Check your state's requirements (for example signature, witness or notarization rules) before relying on this document.
E-Sign Auto is not a law firm and does not provide legal advice.

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1. Parties2. Details 1/23. Details 2/24. Optional clauses

Parties

Signing order: Borrower → Lender. Each signer is invited after the previous one signs.

1. BorrowerFull name *Email (to send the signing link)

2. LenderFull name *Email (to send the signing link)

Signature, date and name fields are added for every signer automatically.

Details 1/2

Principal amount *Date *Annual interest rate (%) *Final due date *Repayment schedule (e.g. monthly installments of $500) *Governing state *

Details 2/2

County where notarized (if notarized)

Optional clauses

Binding arbitration instead of court
BINDING ARBITRATION. Any dispute not resolved by negotiation or mediation shall be settled by binding arbitration before a single arbitrator under the rules of a recognized arbitration provider, held in the county named for venue (or the governing state). Judgment on the award may be entered in any court with jurisdiction.Winner recovers attorney fees
ATTORNEY FEES. In any action to enforce this document, the prevailing party may recover its reasonable attorney fees and costs.Waive jury trial
JURY WAIVER. To the extent permitted by law, each party waives trial by jury in any action arising out of this document.Force majeure (excuse for events beyond control)
FORCE MAJEURE. Neither party is liable for delay or failure to perform (other than payment) caused by events beyond its reasonable control, such as natural disasters, war, epidemics or government action, if it gives prompt notice and resumes performance as soon as practical.No assignment without consent
ASSIGNMENT. Neither party may assign this document without the other party's prior written consent, except to a successor of its entire business.

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Signature, initials (every page) and date fields are placed for each party. A witness/notary block is included. You can review and adjust them before sending.

Live preview

What the sections mean (plain English)

Payments: How much is paid, when, and what happens if it's late.
Prepayment: How much is paid, when, and what happens if it's late.
Late Payment: How much is paid, when, and what happens if it's late.
Default: What happens if someone doesn't do what they promised.
Waiver: Rights or claims being given up.
Governing law: Which state's law applies and where any lawsuit must be filed.
DISPUTE RESOLUTION: How disagreements get handled before anyone goes to court.
SEVERABILITY: If a court strikes one clause, the rest still counts.
ENTIRE AGREEMENT; AMENDMENTS: How this document can be changed later.
NOTICES: How the parties must officially contact each other.
COUNTERPARTS; ELECTRONIC SIGNATURES: E-signatures are valid and each party can sign separately.
Optional clauses: Extra terms you can switch on or off in step 3. Leave them off if unsure.

How to use this Promissory Note template

Answer the guided questions. Your name and company fill in automatically from your profile.
Pick the governing state and complete the [STATE-SPECIFIC] blanks. Switch optional clauses on or off.
Check the live preview, then create the document. Signature, initial and date fields are placed for each party.
Review the fields and send. Each party signs in order, and everyone gets the signed PDF.

Frequently asked questions

Is this Promissory Note template free?

Yes. You can fill it in, download it and send it for electronic signature with a free E-Sign Auto account.

Is an electronically signed Promissory Note legally binding?

In the U.S., the federal ESIGN Act and state UETA laws generally give e-signatures the same effect as handwritten ones, but this type of document often also needs witnesses or a notary, and some states require wet-ink signatures. Check your state's rules.

Does this template work in my state?

It is a generic, state-neutral starting point. Pick your governing state and complete every blank marked [STATE-SPECIFIC]. This template is not legal advice; consult a licensed attorney in your state.

Who signs, and in what order?

Borrower, then Lender. Each signer gets a secure link in that order, with signature, initial and date fields already placed.