A note, commonly called a promissory note, acts as an evidence of debt when a loan is granted. The lender drafts the note for the borrower to sign. By doing so, the borrower promises to repay the loan according to the terms set forth within the language of the note. Notes are typically used for mortgage loans, student loans or automobile loans. However, a note can be used for personal loans as well. All notes should include the names of the lender and borrower, amount of money borrowed, date the final payment must be made by and the interest rate charged on the loan. Promissory notes are viewed as a legal contract and can be used as evidence that the borrower promised to repay the loan if he fails to repay it in the future.

Step 1.

Review the note carefully. Ensure that all information concerning names, dollar amounts and dates are correct. Also review the repayment terms to ensure they are correct.

Step 2.

Consult a lawyer if you have questions about the note. If there is an error, the lawyer will work with the lender to correct the note.

Step 3.

Sign the note where your name is indicated. Most notes are only a few pages long. Sign in pen. If possible, sign the note with the lender present.


Keep copies of the note for your personal records.