Promissory Note with Payment Schedule

A borrower has to write a promissory note because it includes the promise from his side to return the money to the lender. The lender usually feels insecure when he has to lend money to someone. The promissory note depends on the agreement and discussion between the lender and the borrower. If the financial condition of the borrower is not good and he cannot pay the borrowed money, he agrees to pay the money in the form of installments. 

What is a promissory note with a payment schedule?

It is a small legal note that is written by a person who is borrowing money. In this note, the borrower is stating that he will return the borrowed money in small installments and then he also gives a payment schedule. This note has a lot of significance in the legal world as it is regarded as a document based on which, the lender can take legal actions if the borrower fails to return the money even in form of installments. 

Why is it important to write a promissory note with a payment schedule?

The person who wants to borrow the money has to prove that he has good financial standing. However, some people fail to prove it. So, they are given another option to return the money in the form of small payments. This way, they can easily return the money.  The lender does not like to lend his money to a person who is not in a position to return it.

Therefore, the borrower tries to convince the lender by writing the promissory note with the payment schedule. Through this note, the borrower states that he will definitely return the money in the form of multiple small payments instead of one payment with a large sum. In these situations, the borrower often pays the interest also because he reaps the benefit of installments. 

What to include in the promissory note with the payment schedule?

This promissory note should include the following points:


Details of the borrower and lender:

This note should make it clear who is the lender and who is the borrower of the money being stated in the promissory note. 

The total amount being borrowed: 

The borrower should mention exactly how much he is borrowing, and also states the amount he is supposed to return to the lender along with the deadline. 

A clear and easy-to-understand payment schedule:

Mention the payment schedule that you are ready to follow, and the lender has also agreed. When you give his schedule, mention the date of each month you are going to pay the installment and then mention the amount you will pay with each installment. 


The promissory note should be signed by the lender, a borrower as well as the guarantor. These signatures should be affixed with a non-erasable ink pen. It is very easy to write a note and then get it signed by everyone who is relevant, but you can put yourself in the hot water if you don’t effectively write a promissory note. Therefore, if you are not so professional and don’t have any experience in writing the promissory note, seek the assistance of a legal prosecutor. 

Writing the promissory note with a payment schedule:

Here are some important points to be kept in mind when you write this note:

Know the terms and conditions:

It is very important to follow the rules and regulations when you are writing a note. This way, you will be able to protect yourself legally. Know the policy of the state regarding writing the promissory note and then write it down. 

Know your rights:

Just because you are a borrower and you are in dire need to borrow money does not mean that you ignore your rights and let yourself get exploited. You should know where you are being treated unfairly. The lender can persuade you into writing a higher interest rate but you should know the agreed rate and mention it in the promissory note. This way, you will be able to protect your right and the money that you have to return.

Sample Notes


Miss Inshal is to receive (mentioned amount) lent by XYZ On the 2nd of December 20XX with an interest rate of 5%. The repayment shall be made in 4 monthly installments to be paid by the 10th of each month. Each installment amounts to (mention amount) including the agreed interest. Ms. Inshal shall be liable to pay a fine in the amount of (mention amount) in case of a delay in the payment of the mentioned installments.


For the value received, the undersigned agrees and promises to pay back XYZ the principal amount along with an interest at the rate of 5% in 10 installments. Each installment amounts to [X] and must be paid within the first 5 days of each month. There shall be no extension for the payment dates.

Promissory note for lending money

Promissory Note File 89 KB

See also: