The amount of the loan — the amount that is borrowed and owed. Repayment dates — the date payments are due or the loan must be repaid. Interest rate — the rate charged or paid on borrowed money. Interest rates are calculated in terms of annual percentage rate or APR. Amount after interest has been applied or PI (principle + interest). The Pledge of Security Agreement or Collateral hold. List any goods or services and the value used as a guarantee of the debt to be paid. Terms for late or missed payments, if applicable. Default terms — what will happen if the borrower fails to repay in a timely manner. Signature
You may want to include a repayment schedule with specific due dates in the note if there are going to be monthly or weekly payments. [3] X Research source
An unsecured promissory note requires no collateral to borrow. Good to excellent credit is required to get an unsecured loan.
UCC forms differ by state and must be filed with your state’s Secretary of State. [6] X Research source The form should include a description of the collateral and its value. [7] X Research source
Legal names of all parties that have a vested interest in the transaction. Address and phone numbers of each party involved, including the lender. The signature of the borrower and a witness. The lender’s signature may or may not be required. The requirement varies by state. Purpose — what the money will be used for. This requirement will also vary by state.
If there was collateral that secured the promissory note, make sure that any liens are cancelled or terminated.
