Make Notes On Legal Kansas Personal Loans Forms For Free

You can use a template or create a promissory note online. But before you begin, you'll need to gather some information and make decisions about the way the loan will be structured. First, you'll need the names and addresses of both the lender (or "payee") and the borrower.

Consider including: Names and addresses of the parties to the agreement. Loan amount (principal). Interest rate. Repayment terms, including dates, and any late fees or penalties. Signature lines.

At its most basic, a promissory note should include the following things: Date. Name of the lender and borrower. Loan amount. Whether the loan is secured or unsecured. If it's secured with collateral: What is the collateral? ... Payment amount and frequency. Payment due date. Whether the loan has a cosigner, and if so, who.

Once you've drawn up the agreement, both parties should sign it in the presence of independent witnesses and each keep a copy. Now you can transfer the money to the borrower ? do this in such a way that there is an indisputable record of the transfer, for example by direct bank transfer or cheque.

For loans by a commercial lender, the lender will provide the agreement. But for loans between friends or relatives, you will need to create your own loan agreement.

Include key terms of the loan, such as the lender and borrower's contact information, the reason for the loan, what is being loaned, the interest rate, the repayment plan, what would happen if the borrower can't make the payments, and more. The amount of the loan, also known as the principal amount.