PROMISSORY NOTE

Date: [DATE]
Principal Amount: [CURRENCY AND AMOUNT, e.g. USD 5,000.00]
Place of Signing: [CITY, STATE/REGION, COUNTRY]

1. PARTIES
Lender: [LENDER FULL NAME], of [LENDER ADDRESS] ("Lender").
Borrower: [BORROWER FULL NAME], of [BORROWER ADDRESS] ("Borrower").

2. PROMISE TO PAY
For value received, the Borrower promises to pay to the Lender the principal sum of [CURRENCY AND AMOUNT IN WORDS] ([CURRENCY AND AMOUNT IN FIGURES]), together with any interest described below, on the terms set out in this Note.

3. INTEREST
[CHOOSE ONE AND DELETE THE OTHER]
Option A (no interest): This Note does not carry interest. Only the principal is repayable.
Option B (with interest): Interest accrues on the unpaid principal at a rate of [RATE]% per year, calculated [SIMPLE / COMPOUNDING] from [START DATE] until the full balance is paid.

4. REPAYMENT
[CHOOSE ONE AND DELETE THE OTHER]
Option A (lump sum): The Borrower will repay the full principal and any accrued interest in a single payment on or before [DUE DATE].
Option B (installments): The Borrower will repay the principal and any accrued interest in [NUMBER] installments of [CURRENCY AND AMOUNT] each, due on the [DAY] of each [WEEK / MONTH], beginning on [FIRST PAYMENT DATE] and continuing until paid in full, with any remaining balance due on [FINAL DUE DATE].

5. METHOD OF PAYMENT
Payments will be made to the Lender by [PAYMENT METHOD, e.g. bank transfer to the account below] and will be applied first to accrued interest, then to principal.
Payment details: [ACCOUNT NAME / NUMBER / OTHER DETAILS]

6. PREPAYMENT
The Borrower may repay all or part of the outstanding balance early at any time without penalty. After any accrued interest is paid, early payments reduce the remaining principal.

7. LATE PAYMENT
If any payment is not made within [NUMBER] days of its due date, the Borrower will pay a late charge of [CURRENCY AND AMOUNT, OR PERCENTAGE] on the overdue amount, to the extent permitted by law.

8. DEFAULT
The Borrower is in default if any of the following occurs:
(a) a payment is more than [NUMBER] days late;
(b) the Borrower becomes insolvent or unable to pay debts as they fall due; or
(c) the Borrower breaches any other material term of this Note.
On default, the Lender may, after giving written notice and [NUMBER] days to fix the problem, declare the entire unpaid balance, plus any accrued interest, immediately due and payable.

9. COSTS OF COLLECTION
If the Lender has to take steps to collect amounts due, the Borrower agrees to pay the Lender's reasonable costs of collection, including legal fees, to the extent permitted by law.

10. SECURITY
[CHOOSE ONE AND DELETE THE OTHER]
Option A (unsecured): This Note is unsecured. No collateral is pledged.
Option B (secured): This Note is secured by the following collateral: [DESCRIBE COLLATERAL]. The Borrower will not sell or transfer the collateral until this Note is paid in full.

11. GOVERNING LAW
This Note is governed by the laws of [STATE/REGION AND COUNTRY], without regard to conflict-of-law rules.

12. ENTIRE AGREEMENT
This Note is the entire agreement between the parties about this loan and replaces any earlier discussions. Any change must be in writing and signed by both parties.

13. SIGNATURES
The Borrower has read and agrees to the terms of this Note.

Borrower:
Signature: ______________________________
Name: [BORROWER FULL NAME]
Date: [DATE]

Lender (acknowledging receipt of this Note):
Signature: ______________________________
Name: [LENDER FULL NAME]
Date: [DATE]

This template is general information, not legal advice.