Simple Interest Loan Bond Format & Template
Tax, GST & Finance · ₹80 · ~6 min · Sign in free, fill the guided form with a live preview, pay to download.
Stamp paper required — state stamp duty on loan bond value. You'll receive the draft; e-stamping is done separately per your state's rules.
What is a Simple Interest Loan Bond?
A simple interest loan bond is a formal acknowledgement by a borrower of a debt, binding them to repay the principal with simple interest by a fixed date. It is a more formal alternative to a promissory note, typically used for larger amounts.
Because it is a bond, it is executed on stamp paper, which gives the lender a strong document to rely on in any recovery proceedings.
When to use it
- You are lending a larger sum and want a formal, stamped acknowledgement.
- A borrower wants to acknowledge an existing debt with interest.
- A promissory note seems too informal for the amount.
What you'll need
Keep these details ready — the form asks for them in this order.
Lender
Lender name
Borrower
Borrower name · Borrower address
Bond
Principal amount · Simple interest rate · Repayment date
Execution
City · State · Execution date
How it works
Enter lender and borrower
Names, and the borrower’s address.
Set principal, interest and date
Principal, simple interest rate and repayment date.
Preview, pay and download
Pay ₹80 and download for stamping.
How to make it legally valid
- Stamp duty at your state’s rate for a bond, usually based on the amount.
- Signed by the borrower with two witnesses.
- Loan paid by traceable means, not in cash for ₹20,000 or more.
Stamp paper. Stamp duty on a loan bond is set by each state and usually depends on the amount secured.
Common mistakes to avoid
- Wrong stamp value for the amount.
- No witness signatures.
- Letting the limitation period run without recovery steps or an acknowledgement.
Ready to prepare your Simple Interest Loan Bond?
₹80 · live preview before you pay
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 simple interest loan bond? Find a tax law lawyer · Legal documents FAQs.