Practical examples of examples of promissory note templates you can actually use

Starting with real‑world examples of promissory note templates

Promissory notes show up everywhere: family loans, side‑hustle financing, private mortgages, even employer advances. Instead of starting with theory, let’s walk through specific examples of examples of promissory note templates that map to situations you’re likely to see in real life.

Below, each scenario includes:

• The context (who is lending to whom, and why)
• The type of promissory note template that fits best
• Key clauses that usually appear in that type of note

Use these as pattern templates, not copy‑and‑paste legal documents. The structure, though, is very close to what lawyers actually draft.

Example of a simple personal loan promissory note

Picture this: Alex lends Jordan $2,000 to cover moving expenses, to be repaid over 12 months with a modest interest rate. No collateral, no business entity, just two individuals. This is where the most basic example of a promissory note template shows up.

A simple personal loan note template in this case typically includes:

• Names and mailing addresses of lender and borrower
• Principal amount (for example, “Two Thousand Dollars ($2,000.00)”)
• Interest rate (fixed annual percentage, often below market among friends or family)
• Payment schedule (monthly installments, due date, and method of payment)
• Late fee terms after a short grace period
• Acceleration clause if payments are missed repeatedly
• Governing law (for example, the state where both parties live)

This is one of the best examples of a promissory note template for informal but documented lending. It keeps the relationship clear without over‑engineering the document.

For U.S. readers, it’s smart to cross‑check interest rate limits against your state’s usury laws. Many state statutes are linked from the Legal Information Institute at Cornell Law School: https://www.law.cornell.edu/states

Examples of examples of promissory note templates for business loans

Business lending adds complexity fast. Once you’re financing inventory, equipment, or startup costs, lenders usually want more than a friendly promise.

In 2024–2025, small business promissory note templates often reflect:

• Higher loan amounts
• Clear default triggers tied to business performance
• Personal guarantees from owners
• Security interests in specific assets

Two very common examples of promissory note templates for business use are:

Unsecured business promissory note

A solo consultant borrows $15,000 from a relative to expand marketing. The lender trusts the borrower and doesn’t demand collateral, but still wants business‑oriented terms.

This unsecured business note template usually includes:

• Identification of the borrower as a business entity (LLC, corporation, or sole proprietor)
• Representations that the signer is authorized to bind the business
• A fixed or variable interest rate (often benchmarked to a rate such as the prime rate)
• Amortized monthly payments over a defined term (for example, 36 months)
• A clause requiring the business to stay in good standing and comply with applicable laws
• Personal guarantee language if the lender insists on extra protection

Unsecured notes like this are common with friends‑and‑family seed funding or bridge financing while a startup waits on a larger round.

Secured business promissory note

Now imagine a small manufacturing company borrowing $250,000 to buy equipment. The lender requires a security interest in that equipment. This is where secured business note templates come into play.

Key features in this example of a secured promissory note template:

• Detailed description of the collateral (make, model, serial numbers, or a schedule attached as an exhibit)
• A security agreement either embedded in the note or as a separate document
• Borrower’s obligation to maintain insurance on the collateral
• Right of the lender to repossess or foreclose on the collateral upon default
• Cross‑default language if the borrower has other agreements with the same lender

In the United States, secured notes are often backed by a UCC‑1 financing statement filed with the state. The Small Business Administration (SBA) has helpful guidance on small business lending and loan structures: https://www.sba.gov

Real examples of promissory note templates used in real estate deals

Private real estate financing is one of the most common places you’ll see detailed examples of promissory note templates. Here are two patterns that show up constantly.

Interest‑only note with balloon payment

A private lender finances $300,000 of a residential property purchase for an investor. For the first two years, the borrower pays interest only, then pays off the entire principal in a balloon payment when they sell or refinance.

This interest‑only balloon note template generally includes:

• Principal amount and interest rate
• Monthly interest‑only payments (for example, interest on $300,000 at 8% per year)
• A fixed maturity date when the entire principal becomes due
• Prepayment terms (whether the borrower can pay early without penalty)
• Clear balloon payment language so the borrower understands the large final payment

This is one of the best examples of a promissory note template for short‑term fix‑and‑flip investors who expect to exit the loan quickly.

Amortizing real estate promissory note

In another scenario, a seller finances part of the purchase price for a buyer who can’t get full bank financing. The note looks a lot like a bank mortgage note, with fully amortizing payments over, say, 15 or 20 years.

This template usually includes:

• An amortization schedule (often attached as an exhibit)
• Escrow instructions if taxes and insurance are collected with the payment
• Late charge and default interest provisions
• Due‑on‑sale clause if the property is transferred

State property law and consumer protection rules matter a lot here. The Consumer Financial Protection Bureau (CFPB) offers plain‑English guidance on mortgage‑related disclosures and consumer rights: https://www.consumerfinance.gov

Examples include student, employee, and family loan promissory notes

Not every note is commercial. Some of the most sensitive situations involve loans inside families, between employers and employees, or related to education costs. These are areas where clear, written examples of promissory note templates can actually prevent personal conflict.

Family loan promissory note

Parents lend an adult child $40,000 for a condo down payment. They want to be fair to other siblings and avoid tax problems.

A family loan note template here might include:

• Below‑market but non‑zero interest rate to avoid being treated as a pure gift for tax purposes
• A clear repayment schedule that doesn’t depend on future events like inheritance
• A clause stating that the loan is separate from any estate planning or gifts
• Optional security interest in the property (recorded as a junior lien)

The IRS publishes guidance on below‑market loans and imputed interest, which is worth reviewing with a tax professional: https://www.irs.gov

Employee advance or relocation promissory note

An employer advances $10,000 to a new hire to cover relocation costs, to be repaid through payroll deductions over two years.

This kind of promissory note template typically includes:

• A breakdown of the advance amount and purpose
• Authorization for payroll deductions, consistent with wage and hour laws
• Terms for what happens if the employee leaves early (for example, acceleration of the unpaid balance)
• Non‑retaliation language clarifying that repayment terms comply with labor regulations

Labor and wage rules vary, so employers in the U.S. should cross‑check with the U.S. Department of Labor: https://www.dol.gov

Private student or education‑related promissory note

A grandparent lends money directly to a grandchild for graduate school tuition, outside of federal student loan programs.

This private education loan note template usually includes:

• Disbursement details (how and when funds are paid)
• In‑school deferment (no payments while enrolled at least half‑time)
• Grace period after graduation before repayment starts
• Interest accrual during school and capitalization rules

These real examples of promissory note templates show how flexible notes can be while still staying organized and enforceable.

Advanced examples of examples of promissory note templates for 2024–2025

Lending trends in 2024–2025 are shaped by higher interest rates, tighter bank credit, and more private lending. That means more people are drafting their own notes—or at least starting from templates.

Here are a few more advanced patterns you’ll see in current examples of promissory note templates:

Variable‑rate promissory note tied to an index

With interest rates moving, some private lenders use variable‑rate notes. For instance, a note might say the rate is “Prime plus 2%,” adjusting quarterly.

A variable‑rate note template includes:

• A defined reference index (for example, the Wall Street Journal prime rate)
• Adjustment dates and how new payments are calculated
• Interest rate caps and floors to prevent extreme swings
• Clear notice requirements when the rate changes

Convertible promissory note for startups

Early‑stage startups often raise money using convertible notes—debt that can turn into equity later. While this strays into securities law, it’s still, at its core, a type of promissory note.

This template generally includes:

• A maturity date and interest rate like a normal note
• A conversion feature triggered by a future equity financing round
• A valuation cap and/or discount rate for conversion pricing
• Investor protections such as information rights

Anyone using convertible notes should be talking to counsel; securities laws are not a DIY playground.

Demand promissory note

A lender gives a flexible loan with no fixed maturity date, repayable “on demand.” This sounds casual, but a demand note template can be very formal.

Typical clauses include:

• Statement that the full amount is due whenever the lender demands repayment
• Reasonable notice period (for example, 30 days) before legal action
• Interest rate and how it accrues up to the payoff date
• Clear waiver of presentment and notice formalities

These advanced examples of examples of promissory note templates show how far you can go beyond the basic “I owe you” format while still keeping the core structure recognizable.

Key building blocks that show up across the best examples

If you scan all the best examples of promissory note templates above, some patterns repeat regardless of the loan size or purpose. Most solid templates include:

• Parties and capacity: Full legal names and addresses, plus whether the borrower signs as an individual, an LLC member, or an officer of a corporation.
• Principal and interest: Exact dollar amount and a clear interest rate, stated as an annual percentage.
• Repayment terms: Due dates, frequency of payments, and how payments are applied to interest and principal.
• Default and remedies: What counts as default (missed payments, bankruptcy, sale of collateral) and what the lender can do in response.
• Governing law and venue: Which state’s law applies and where disputes will be resolved.
• Signatures and, where needed, notarization: Some states or collateral types strongly favor notarized signatures.

When you compare real examples of promissory note templates, you’ll notice that strong notes don’t hide these terms in vague language. They spell them out in plain English.

FAQ: examples of promissory note templates and common questions

What is a simple example of a promissory note template for a friend‑to‑friend loan?
A classic example of a simple template for a friend‑to‑friend loan states the amount borrowed, a modest fixed interest rate (or explicitly says no interest), a clear monthly payment amount, a due date each month, and what happens if a payment is more than a set number of days late. It also names a governing state law and includes signatures for both parties.

Do I always need collateral in a promissory note?
No. Many examples of promissory note templates are completely unsecured, especially for small personal loans. Collateral is common for larger business and real estate loans. If collateral is involved, the note or a related security agreement should describe it in detail.

Can I write my own promissory note using online examples?
You can start from online examples of promissory note templates to organize your thoughts, but you should treat them as drafts, not final documents. Laws on interest limits, consumer protection, and disclosures vary by state and country. For anything beyond a small, informal loan, it’s wise to have a lawyer review your draft.

What’s the difference between a promissory note and a loan agreement?
A promissory note focuses on the promise to pay: amount, interest, and repayment terms. A loan agreement is usually longer and may include covenants, conditions to funding, and more detailed representations and warranties. Many real‑world examples include both: a short promissory note plus a separate loan agreement.

Are there official government examples of promissory note language I can study?
Yes. While you won’t find a one‑size‑fits‑all template, agencies like the SBA, the Department of Education, and housing authorities publish sample note language or describe required terms for their programs. Browsing those materials can give you high‑quality reference points, even if you’re drafting a private note.

The bottom line: studying real examples of examples of promissory note templates is the fastest way to understand how these documents work in practice. Use the patterns above as a checklist, then adapt them to your situation with professional advice so your note is not just enforceable, but actually readable by the people signing it.