Michigan Unsecured Promissory Note Template
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The Michigan Unsecured Promissory Note Template is a written agreement regarding a loan that is entered into by two parties – a lender and borrower. The agreement outlines the principal sum, interest rate, payment frequency, and other terms of a loan. The reason that it is “unsecured” is because the borrower does not pledge collateral (as opposed to a secured note). Should the borrower default on the loan, the lender’s only recourse is to file a civil suit. This is why unsecured notes/loans are typically reserved for borrowers who have a high net worth (or an excellent credit history).

How to Write

Step 1 – Download the template in the format of your choice.

Step 2 – Provide the following information:

• Name of borrower
• Address of borrower
• Name of lender
• Address of lender
• Principal sum
• Interest rate per annum

Step 3 – Payments – Select the appropriate payment method by checking the box off (from the following options):

• No Installments
• Installments
• Interest Only

Step 4 – If applicable:

• Provide the installment amount
• Enter the monthly/weekly due date

Step 5 – Due Date:

• Submit the due date in the provided format.

Step 6 – Interest Due in Event of Default:

• Provide the interest rate that the borrower will need to pay if they default on the loan/note.

Step 7 – Late Fees:

• Fill in the late fee amount.
• Enter the number of days the borrower will have after missing the due date to make the payment (before the late fee is charged to his/her account).

Step 8 – Acceleration:

• Fill in the amount of time the borrower shall have to cure a default.

Step 9 – Signatures:

• Provide the date of signing.
• Enter the full names (printed) of all the parties involved in the agreement.
• Borrower must sign their name.
• Lender/witnesses must sign the form.