Sample Promissory Note Letter

In the case of a loan, a promissory note lays forth the conditions under which the borrower will be repaid.

Loans between friends and relatives are the most prevalent, but formal paperwork is required more commonly in the circumstances like this when official agreements are made between companies and consumers.

If the provisions of the promissory note are violated, the borrower should not sign it. Because it is a legally binding instrument, they should only sign it if they are satisfied with the contents.

When a promissory note is used to safeguard a lender, a friend or family member usually does it as a favor rather than a professional lender with a large sum of money set aside only for this scenario.

A promissory note should be produced and signed even if the lender knows the borrower well. This provides comfort to the lender taking on all of the risks. You may handwrite a promissory note for informal purposes.

As a minimum, the promissory note should include the following:

  • The commencement date of the loan
  • The borrower’s and lender’s names
  • The amount of money that was borrowed
  • Terms of repayment include how long it will take, how many installments it will take, and how much each payment will cost.
  • The repercussions of not repaying.

To change the provisions of the promissory note after it has been signed, all parties must agree and either sign a new note or an addendum (addition) to the existing one, both of which must be signed by both parties. Without both signatures, it will not be able to go through.

Also See: Sample Letters Giving Permission to Use Copyrighted Material

Sample 1: Promissory Note Letter


I [full name] have borrowed the sum of [amount] from [lender’s full name] on [date].

I promise to pay back this amount within [timescale in months or years] which includes interest of [amount – omit if no interest is being charged]

I will pay the amount of [amount] every [month / two weeks / specific dates] by [cash / bank transfer / Paypal etc].

I understand that the loan will be repayable in full (including interest) if during the term of the loan  I am late with my payments by more than [5 days on 3 separate occasions – specify terms here]. I further understand that the lender will take legal action to recover the full amount in this instance if I do not pay it back within two weeks of being notified of my default in payments.

The lender promises that they will not require repayment of this loan any earlier than specified within this promissory note as long as the terms have been met.

Signed by Lender – [lender name] and Borrower – [Borrower name]


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