Free Michigan Promissory Note Template
Free, editable, and written for Michigan. Opens in Word, Pages, or Google Docs.
Quick Answer
What is a promissory note and when do you need one?
A promissory note is a written promise by one party to repay money to another on agreed terms. It states the amount borrowed, the interest rate, the payment schedule, what counts as default, and whether anything secures the loan. Michigan sets limits on interest: absent a written agreement the legal rate is 5 percent, parties may generally agree in writing to up to 7 percent for most private loans, and exceeding the limits set by the usury statute can cost a lender the right to collect interest. Most written contract claims in Michigan must be filed within six years. This free template is a generic starting point, not legal or financial advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.
What this document does
- A one-sided written promise to repay money — simpler than a full loan agreement.
- Used for family loans, business loans, seller financing, and settling debts over time.
- It can be unsecured, or secured by collateral described in the note or in a separate security agreement or mortgage.
What Michigan requires
- Michigan's usury statute sets 5 percent as the legal rate absent agreement and generally allows parties to agree in writing to a higher rate up to 7 percent for most private loans. Different rules apply to regulated lenders and to certain business transactions.
- Charging more than the lawful rate can cost a lender the right to collect interest and, in some circumstances, expose them to other consequences. If your rate is above the standard private limit, get legal advice before signing.
- The general limitations period for a written contract claim in Michigan is six years from the breach, so an unpaid note does not stay collectible forever.
- A note secured by real estate requires a separate recorded mortgage; a note alone does not create a lien on land.
- A note secured by personal property normally requires a security agreement and, for perfection against third parties, a UCC financing statement.
- Keeping a written payment record protects both sides and matters if you ever have to sue on the note.
How to sign and deliver it
- The borrower signs. Co-borrowers and guarantors each sign their own line.
- The lender does not have to sign a plain promissory note, though many do to acknowledge the terms.
- A notary is not required but is recommended, especially for larger amounts or family loans.
- The lender keeps the signed original; the borrower keeps a copy. Record every payment with the date and the remaining balance.
Mistakes people make
- No interest rate stated, or a rate above the lawful limit.
- No payment schedule, so nobody can tell when the borrower is late.
- Calling it 'secured' without a separate mortgage or security agreement and filing.
- No late fee or default terms, leaving the lender with no leverage short of suing.
- Forgetting to state that the borrower can prepay without penalty, when that is what both sides intended.
- Not keeping a signed original and a payment log.
Frequently asked questions
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Reviewed and updated by the Clear Path document team. Informational only — not legal advice.
Important: Clear Path Document Services is a document preparation and filing-assistance service — not a law firm. We do not provide legal advice, attorney representation, or create attorney-client relationships. All documents are prepared based on information you provide for educational and administrative purposes.Read full disclaimer.