Sample Note

All About Writing Notes & Sample Notes

installment loans based on income

Payment Promissory Note

Payment notes are also known as notes payable are a type of contract or agreement that comes into existence between two parties when one party receive a loan from another party for a specific period of time with a due date and with a specific amount of interest rate charged on it annually. Payment notes that are based on a period of one year or less are known as short payment notes while those having a period greater than one year are considered long term payment notes. Payment notes can be on periodic bases, it means that a loan has some installments over a particular period of time for which payment notes are created. Though, a periodic payment note is a common type of consumer payment notes however, there are other types of payment notes like a balloon, on demand , late fees are also available that a company, bank, creditor or a person chooses on his convenience.

A payment note is similar to a promissory note and is a legal document that everyone should review carefully before signing off to understand the terms and conditions of a note as well as to ensure protection against any kind of issue.

A Sample Payment Note

$ _________________                        Date _________________                 State _____________

I Borrower promise to pay to the order of Lender or the holder of this note a sum of $_________ with interest rate applied per annum according to the terms of this note.

The payment should be made on ___ / ____ / 20___ or the borrower will pay the amount of a loan in equal monthly installments within one year or write a specific period of time.

If the payment is not made by the borrower within the specified period of time, then the borrower will have to pay a late fee of $_______.

All payments should be made till due date on the given address:

 

Signature of the borrower: ________________             Signature of the Lender: ______________

Address and contact information                                     Address and contact information

Guidelines of writing a Payment Note

  • At the top of the page, write clearly the name of the note like payment note, promissory note etc.
  • Write the amount of the loan in dollars at the left top of the payment note as well as write the date at the right top of the note. The date should be the one on which you have organized the note as this will show the terms of the notes are based from this date.
  •  Clearly write the terms of the note along with the names of the borrower and lender, the principal amount of the loan and the percent interest rate per annum.
  • Mention the mode or style of repayment of the loan such as a periodic payment note in which payments are made in installments each over a specific period, the balloon payment note in which a borrower first pay a particular amount of loan for some months, then the borrower will pay an interest amount on a particular date and then pay off the final payment of the loan etc.
  • Of the method of repayment, clearly mention the terms and the name of the method.
  • Include terms for defaulter, late fees and sum up the payment note by taking the signatures of both the parties along with their contact information and permanent residential address.

Related Notes

  • Demand Promissory Note
    A demand note is a type of promissory note or loan note without any specified time for the repayment of the loan and is held by the lender that he can use it any time and call the borrower for the repayment of a loan.  These notes are provided by the lender in a flexible manner and usually based on a long term in which the lender never asks for the repayment of the loan to borrower unless he needs his money. When the demand notes are created by the loan parties, there is no kind of payment terms...
  • Simple Promissory Note
    A simple promissory note is a loan document that shows an agreement between two parties and bounding the lender and the borrower legally. A simple promissory note is based on a number of details of the loan such as the amount of the loan, the names of both the parties, contact information of the parties, applied interest rate and a specific date or due date on which the borrower has to pay back the loan amount to the lender. The purpose of adding a list of information in a simple promissory note...
  • Unsecured Promissory Note
    As the name implies an unsecured promissory note is a promissory note in which a borrower doesn't have to put something that is equal to the value of the loan amount as collateral such as car, house or any other type of property. An unsecured promissory note has also a legal value and one party can sue the other party in court in case of violation of the terms.  Unsecured promissory notes, like simple and personal promissory notes are common for loans in which the parties, the lender and the bor...
  • Payable Note (Promissory)
    A payable note is a note in which a promise is made by a borrower to pay the debt on a specific date and is used as a liability on the balance sheet of the borrowing company. It is a pure accounting term and is widely used in the business sector. Payable note involves a written promissory note that is based on the loan amount, company information and date of return. A payable note is free from any kind of interest and the borrower have to pay back the principal amount to the lender. As the borro...
  • Secured Promissory Note
    This type of note is a written document that is backed by a property as a collateral or security for the loan amount. In a secured promissory note, it is stated that if the borrower is failing to repay the loan amount on the due date, the lender will then take your property. There are many lenders who never pay the loan amount without any security and is usually used in commercial or real estate loans. Secured promissory a bit stressing on the part of the borrower because if due to any reason th...

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