Free Georgia Promissory Note

Promissory Note Georgia: Everything You Need To Know

Getting a loan from a financial institution comes with a fair share of legal duties and implications. For instance, if you cannot repay the loan, you may give up the right to own valuable property in favor of the lender.

Owing to complications that arise from loan repayment, lenders sometimes sign promissory notes with prospective borrowers. Through the agreement, lending institutions and individuals have an assurance that borrowers will repay the loan.

Here’s what you should know before signing a Georgia promissory note.

Georgia Promissory Note

A promissory note in Georgia is a legal document written and signed by two parties who have a valid loan transaction. The lender and borrower agree on payment modes, penalties for nonpayment, due dates, and other pertinent issues in the document.

In Georgia, a promissory note is a security instrument enforceable under the laws relating to contracts.

Types of Promissory Notes

Most states recognize two forms of promissory notes and Georgia is no exception. Broadly, Georgia promissory notes may be secured or unsecured.

Secured Promissory Notes

As the name suggests, a secured promissory note offers the lender security against financial loss if the borrower fails to pay it back. Therefore, when signing the contract, the law requires you to include a valuable item for collateral.

A secured note should bear the title “secured” and have sufficient information about the collateral. Without meeting the prescribed requirements, the courts may render the contract unsecured.

Unsecured Promissory Notes

An unsecured promissory note in Georgia is a simple promise to repay the loan without any collateral. Therefore, if the borrower fails to pay back, the lender may incur financial losses unless the courts intervene.

What’s the Maximum Interest Rate in Georgia?

Georgia has well-defined Usury laws that regulate interest rates for promissory notes.

Section 7-4-2 of the State Code requires lenders to charge a maximum interest rate of 7% per annum. Where parties agree otherwise, it is still acceptable if the agreed rate doesn’t exceed the set rates.

However, some exceptions may still apply under the Usury laws. For instance, if you borrow less than 3,000, your interest rate shouldn’t exceed 16%. Similarly, loans between $3,000 and $250,000 may have an agreed interest rate as long as it is in writing and doesn’t exceed 5% per month.

How to Fill Out a Georgia Promissory Note

Completing a legal note can be tricky, especially if you’re doing it for the first time. However, you can fill out the template with an attorney's assistance.

Here’s a run-down of the steps to follow:

Download a Suitable Template

Download a suitable template that matches your specific needs.

Indicate the Principal Amount

Include the sum of money you receive from the lending institution in US Dollars. Usually, the principal amount excludes the interest you'll pay on the loan.

Identity of the Lender

The agreement should include the legal identity of the lender, including the name and mailing address.

Define Interest Rate

Before signing the agreement, you should have an agreed interest rate for the loan. As per the law, the average interest rate shouldn’t exceed 7% per annum unless by a notable exception.

Determine the Payment Schedule

The payment schedule includes the due date for paying the loan, the number of installments, and the amount of each installment. If the lending institution or individual has a penalty for late payments, it also forms part of the payment schedule.


When signing, include your legal name (borrower) and append your signature. As a requirement, Georgia promissory notes require notarization, so you should also have a signature from an attorney or notary to make it valid.

Do you wish to borrow a loan and looking for the correct document to legalize the transaction and protect your interests? Consider downloading a free PDF of a Georgia promissory note from our site, and you will be good to go.