Avoid misconceptions between lender and borrower by preparing a promissory note
Want to prepare a simple promissory note? Then you have to hire a professional legal advisor who is expertise in preparing a professional and clear promissory note. In simple words, this is the legal document that is signed between two parties, specially the lender and borrower to ensure that the amount borrowed by the borrower is paid on time. Moreover, if the borrower fails to repay the amount on time, then the lender has all right to hand over the property that was kept as indemnity. This agreement includes various details such as the name of the lender, borrower, contact details, amount borrowed, due date to repay back the amount that was borrowed from the lender, interest rate, etc. This agreement should be clear and crisp and should not leave any room of misconceptions between both the parties.
The key purpose of including all the details in the simple promissory note is to elude misunderstanding between the parties and moreover, in case if the parties violates the agreement, then it would stand as a concrete proof to submit to the court. Moreover, there are two types of promissory notes available. One is called secured and the other is called unsecured. In secured note, before giving the loan, the lender will put gold or other expensive property as a surety, where in the unsecured note there is no property put as collateral, however, this note is made for small amounts. The unsecured promissory note is a simple note that is written between friends and family members, when they have borrowed money from them. This promissory note plays a vital role in everyone’s life and keeps them away from falling prey to frauds.