Promissory Note (Loan / IOU)

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Lending money — or being paid in installments after a sale? PaperKit drafts a proper Promissory Note: a borrower's binding, written promise to repay a lender on stated terms. It's the actual loan instrument a seller-financed sale creates, and it stands alone for any personal or business loan. Pick how it's repaid: amortized installments (PaperKit computes the monthly principal-&-interest payment, the total of payments and the total interest, with an optional balloon), a lump sum at maturity (principal plus accrued interest due on one date — PaperKit shows the total due), or due on demand (payable whenever you call it — PaperKit shows the per-diem and monthly interest accrual). Choose unsecured or secured (add collateral and the right to repossess or foreclose on default), set the interest rate, late fee, grace period and prepayment terms. Hosted online for the borrower to review & e-sign. Clean PDF.

Lender / payee (the party lending — drafting party)

Lender name *

Legal entity (optional)

Role label

Signer name

Signer title

Email (optional)

Notice address (optional)

Borrower / maker (the party who promises to pay & e-signs)

Borrower name

Entity type (optional)

Authorized signer (if an entity)

Signer title (if an entity)

Borrower email (optional)

Borrower phone (optional)

Borrower address (optional)

How is it repaid?

The big lever — it rewrites the repayment mechanic, which schedule section appears, and the payment math.

Amortized installments: the borrower repays principal + interest in equal periodic payments. PaperKit computes the monthly payment, the total of payments and the total interest, with an optional balloon.

Principal & interest

Principal amount

Interest rate (% / yr)

Installment schedule

PaperKit computes the monthly principal-&-interest payment, the total of payments and the total interest over the term.

Amortization term (years)

Payment frequency

First payment date

Balloon due in (years, optional)

Is the note secured?

A secured note adds a Security / Collateral section — the lender can repossess or foreclose on the collateral if the borrower defaults.

Late charges & prepayment

Late fee (flat, optional)

Grace period (days)

Borrower may prepay in whole or part without penalty

Governing law & extras

Governing law (optional)

Additional terms (optional)

Live preview

A real, section-by-section promissory note. The repayment choice drives the schedule section and the payment math. Publish to get a hosted link the borrower can e-accept online.

Enter the lender name…

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A promissory note is a template for convenience, not legal advice. It is a binding obligation to repay money; interest, usury, disclosure and applicable state and federal law (including any required consumer-lending disclosures and maximum-rate limits) continue to govern. PaperKit is not a law firm. Review the note and consult a qualified attorney.