Promissory Note Format & Template
Tax, GST & Finance · ₹70 · ~5 min · Sign in free, fill the guided form with a live preview, pay to download.
Stamp paper required — state stamp duty on promissory note (fixed value). You'll receive the draft; e-stamping is done separately per your state's rules.
What is a Promissory Note?
A promissory note is a short written document in which the maker unconditionally promises to pay a certain sum of money to the payee, on demand or on a set date. It is a negotiable instrument under the Negotiable Instruments Act, 1881.
It is simpler than a loan agreement and is commonly used for smaller loans between individuals. To count as a promissory note, the promise must be unconditional and the amount certain.
When to use it
- You are lending a modest sum and want simple written proof.
- A borrower is acknowledging an existing debt with a promise to pay.
- A short-term loan will be repaid on demand or on a fixed date.
What you'll need
Keep these details ready — the form asks for them in this order.
Maker
Maker name · Maker address
Payee
Payee name · Payee address
Terms
Amount · Interest rate, if any (optional) · Repayment/demand date
Execution
City · State · Execution date
How it works
Enter maker and payee
The person promising to pay and the person to be paid.
Set amount and interest
The sum, interest if any, and demand or repayment date.
Preview, pay and download
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Stamp and sign
Stamp it as the law requires — commonly by affixing a revenue stamp — and the maker signs across the stamp.
How to make it legally valid
- An unconditional promise to pay a certain amount.
- Signed by the maker.
- Duly stamped before or at signing — an unstamped promissory note cannot be admitted in evidence, and the defect cannot be cured later.
Stamp paper. Promissory notes must be stamped when executed. Confirm the current stamp requirement with your bank or a stamp vendor before signing.
Common mistakes to avoid
- Adding conditions, which stop it being a promissory note.
- Signing it unstamped.
- Suing more than three years after the note, when recovery is usually time-barred.
Ready to prepare your Promissory Note?
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This is a self-help template for common situations — it is not legal advice and LawMitran is not a law firm. Need help with your promissory note? Find a tax law lawyer · Legal documents FAQs.