ClauseryFree promissory note template (Word)
A promissory note for a personal or business loan with the principal, optional interest, lump-sum or instalment repayment, prepayment, default after a grace period and an optional witness.
No sign-up. Your answers stay in your browser. Who it is for: Friends, family and small businesses documenting a loan.
Updated · Word (.docx) · Free to use and adapt
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What is in the promissory note
- Borrower, lender and principal
- Optional interest rate
- Lump sum by a date, or instalments
- Prepayment without penalty
- Default after a grace period
- Governing law
- Signature and optional witness
Read the full template
This is the complete wording. [Labels] are filled in from your answers, and highlighted text only appears when it applies; hover over it to see when.
PROMISSORY NOTE
Principal amount: [Principal amount] Date: [Note date]
For value received, [Borrower name] of [Borrower address] (the "Borrower") promises to pay [Lender name] of [Lender address] (the "Lender") the principal amount above, with interest at [Interest rate] per year.
Repayment
The Borrower will repay the loan in [Installment count] [Installment frequency] instalments of [Installment amount], starting on [First payment date].The Borrower will repay the full amount with interest on or before [Maturity date].
Prepayment
The Borrower may repay all or part of the loan early without penalty.
Default
If any payment is more than [Grace days] days late, the Lender may demand immediate payment of the full outstanding balance.
Governing law
This note is governed by the laws of [Governing law].
Borrower: ____________________________ [Borrower name]
Witness: ____________________________ [Witness name]
The questions you answer
Clausery turns the template into a short questionnaire. Optional parts only appear when they apply.
| Question | Type | Asked when |
|---|---|---|
| Principal amount | Money | Always |
| Note date | Date | Always |
| Borrower name | Short text | Always |
| Borrower address | Long text | Always |
| Lender name | Short text | Always |
| Lender address | Long text | Always |
| Charges interest | Yes / no | Always |
| Interest rate | Short text | If “Charges interest” is yes |
| Pay in installments | Yes / no | Always |
| Installment count | Number | If “Pay in installments” is yes |
| Installment frequency | Short text | If “Pay in installments” is yes |
| Installment amount | Money | If “Pay in installments” is yes |
| First payment date | Date | If “Pay in installments” is yes |
| Maturity date | Date | If “Pay in installments” is no |
| Grace days | Number | Always |
| Governing law | Short text | Always |
| Has witness | Yes / no | Always |
| Witness name | Short text | If “Has witness” is yes |
How to use it
Open it
Click Fill it in now. The template opens in Clausery with its questionnaire ready.
Answer the questions
Work through the sections. Drafts save as you type, on your device.
Download the document
Get a finished Word file with your formatting intact, or print it to PDF.
Prefer to start from your own wording? Download the Word file, edit it, keep the {tags}, and upload it to Clausery. See the template syntax.
Questions
Is there a maximum interest rate?
Many jurisdictions cap interest rates (usury laws). Check the limit where the borrower lives.
Does it need a witness or notary?
Usually not, but some places or lenders require one. The witness line is optional.
Is it really free?
Yes. The download is free, and filling it in with the Clausery app is free too, with unlimited documents. Library templates never count towards a plan limit, and no account or card is needed.
Is my information uploaded anywhere?
No. Clausery runs entirely in your browser. Your answers and the finished document are created and stored on your own device.
Is this legal advice?
No. These are general samples. Laws differ between countries and states, so have the wording reviewed for your situation before you rely on it.
Clauses in this template, explained
- Late payment interest clause
- Governing law and jurisdiction clause
- Waiver clause
- Counterparts and electronic signature clause
Guide: How to lend money to family or friends, in writing
Free tool: Loan repayment calculator: the instalment amount and a full schedule
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This template is a general sample and not legal advice. Laws vary by jurisdiction; have it reviewed before use.