Promissory Note Generator — Loan Promise to Pay
Create a legally binding promissory note for personal or business loans. $9.99 instant PDF.
A promissory note is a written, legally binding promise from a borrower to repay a specific sum of money to a lender under defined terms. It documents the principal amount, interest rate, repayment schedule, and what happens in the event of default — turning a casual loan into an enforceable financial instrument. Promissory notes can be unsecured (backed only by the borrower's promise to pay) or secured (backed by collateral like a vehicle, equipment, or real estate that the lender can claim if the borrower defaults). Our generator handles both, with options for lump-sum, installment, or interest-only payment schedules, customizable late fees, prepayment terms, and acceleration clauses. Attorney-drafted, state-aware, and delivered as a clean signature-ready PDF for $9.99 — no subscriptions.
Why StubFast?
- Secured or unsecured options — add collateral terms for vehicles, equipment, or real estate to protect the lender
- Flexible payment schedules: lump sum, monthly installments, interest-only, or balloon payment at maturity
- Customizable late fees and grace period that comply with your state's usury and consumer lending laws
- Default and acceleration clauses that let the lender demand full repayment if the borrower misses payments
- Clean, attorney-drafted PDF with notary signature blocks — ready to sign and enforce in court
Common Use Cases
- →Personal loans between friends or acquaintances that need a paper trail to protect the relationship
- →Business loans from a founder, investor, or third party to fund inventory, equipment, or working capital
- →Family loans for tuition, weddings, down payments, or emergencies that need clear repayment terms
- →Real estate loans where a private seller is financing the buyer (seller carryback or owner financing)
- →Vehicle or equipment loans secured by the asset being purchased, with repossession rights on default
- →Bridge loans, short-term advances, and any informal lending arrangement that needs legal enforceability
What is a Promissory Note?
A promissory note is a written, signed promise from a borrower to repay a specific sum of money under defined terms — turning what would otherwise be a verbal IOU into a legally enforceable financial instrument. It names the lender, the borrower, the principal amount, the interest rate, the repayment schedule, and the consequences of default. Once signed, it can be filed in court and used to collect the debt just like any other contract.
Secured vs. Unsecured Promissory Notes
An unsecured promissory note is backed only by the borrower's promise to pay. If the borrower defaults, the lender must sue and chase the borrower's general assets. A secured promissory note adds collateral — a car, a piece of equipment, a property — that the lender can seize and sell without going to court if the borrower stops paying. Our generator handles both, and includes the proper UCC-1 language when collateral is involved.
Promissory Note vs. Loan Agreement
A promissory note is a one-document promise to repay — short, fast, and ideal for loans under $25,000. A full loan agreementis much longer and adds covenants, representations, conditions to funding, and detailed remedies. Use a promissory note for personal, family, or small business loans where you want enforceability without the complexity. Use a loan agreement when the loan is larger, more complex, or involves ongoing control over the borrower's operations.
Interest Rates and Usury Limits
Every state has a maximum legal interest rate for private loans — the usury cap. Charging more is illegal and can void the note entirely or strip the lender of any right to collect interest. Caps range from 5% in some states to over 25% in others, and business loans are often exempt. Our generator pulls in the cap for your state and warns you if your rate exceeds it.
How to Use This Generator
Enter the lender, borrower, principal, interest rate, and repayment schedule. Choose lump sum, installment, or interest-only. Add collateral if the note is secured. Set late fees and acceleration terms. Preview the result, then pay $9.99 for the clean PDF. Both parties sign — get it notarized if your state requires it — and the note is enforceable.