Promissory Note Loan Agreement


A promissory note loan agreement is a document that is drafted when an individual or an organization referred to as the borrower promises in writing to pay the loan amount to another individual or organization referred to as the lender in near future. The details mentioned in the agreement include the principal loan amount, the interest rate if applicable, and terms of repaying the loan, maturity date of the loan and details of both the parties. A promissory note also acts as legal documentary evidence.

Sample Promissory Note Loan Agreement

This promissory note loan agreement has been drafted and entered between Roger Moore and Zen Finance Services Limited and is effective from 7th of June 2012.

As per the agreement the Zen services Private Limited referred to as the lender promises to lend a sum of $60000 to Roger Moore referred to as the borrower.

Details of the borrower:

Correspondence address: 60 York Shire Road, New Carolina, South Dakota 8907

Cell phone number: 67345

E mail id: rog@mail.com

Details of the lender:

Office address: 89 Indiana Jones Road, New Carolina, South Dakota 8934

Contact number: 54786

Fax number: 65234

E mail id: zen@mail.com

The terms of the agreement are as follows:

  1. Purpose of lending credit: The purpose of lending credit to the borrower is that the borrower intends to purchase a new office space.
  2. Interest rate: The borrower has to pay 8% interest on the loan amount annually. The interest rate will be calculated at a compounded rate.
  3. Repayment of loan: The borrower has to repay the loan in a period of five years. The borrower has to pay a monthly installment for five years.
  4. Loan security: The borrower has to keep the office space that he is purchasing as a loan security.

Signature of the borrower: _____________ Signature of the lender: ____________

Jake Law

(On behalf of Zen Finance Services Limited)

Category: Loan Agreements

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