Michigan Unsecured Promissory Note Template

TheĀ 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.
Michigan Unsecured Promissory Note - Adobe PDF - Microsoft Word

Michigan Unsecured Promissory NoteAdobe PDFMicrosoft Word