How to Sign Promissory Notes

A promissory note is a legal contract and written promise to repay a loan. Promissory notes can be used by anyone who lends money to an individual, including family members or friends. When you sign a promissory note, you are agreeing to the terms of the loan, as stated in the contract. Whether you are applying for a student loan, personal loan, car loan or home mortgage, the lender will normally require you to sign a promissory note if you are to be approved for the loan. Learn the proper way to sign a promissory note before you apply for a loan.

Review the entire contract. Take time to carefully read through each page of the promissory note, line per line. The agreement should contain important information about the loan, such as the original amount of the loan (principal), repayment schedule, interest rate, grace period and penalties for defaulting. The promissory note should also include your full legal name and the name of the lender.

Confirm that you understand the terms and conditions of the loan. Let the lender know if you have questions about the promissory note. It is important that you understand your rights and responsibilities before you sign the document. Be sure to tell the lender if you find errors on the promissory note. The lender will need to correct the errors prior to you signing the contract.

Sign the promissory note in front of the lender. There should be a section designated on the contract for signatures. You will need to print your name as it appears on the contract and provide a signature. The lender will need to sign the contract, as well. Quite often, the lender is also the witness, so you may not need another person present when you sign the promissory note. However, it is always a good idea to have at least one additional person present when signing a legal document.

Obtain a copy of the contract. Ask the lender for a copy of the promissory note before you leave the facility. Make sure you receive a copy of the entire document.


  • The promissory note is a legal contact and the borrower is expected to abide by the guidelines established by the lender. If you fail to repay your loan, the lender may report your delinquent account to a collection agency or sue you for the unpaid debt.