Loan Agreement / Promissory Note

A loan agreement is a contract between lender and borrower setting out the amount, interest rate, repayment schedule, security, what counts as default and where disputes are decided. A promissory note is a shorter instrument under the Negotiable Instruments Act, 1881, in which the borrower unconditionally promises to pay a stated sum, on demand or on a fixed date.

Which one fits depends on the loan. Unsecured lending between family or friends, or a short bridge to a supplier, is often handled with a promissory note. Anything involving collateral, instalments, prepayment, guarantors or a corporate borrower needs a full agreement. Both have to be correctly stamped to be of any use later.

We take the commercial terms you have agreed and draft the instrument that fits them, then confirm what stamp duty your state charges and how the document should be signed and witnessed. Drafts keep both sides' positions clear, so the lender is protected without making the document unsignable.

The process

100% digital and hassle-free