Promissory Note - Simple - Delaware
SIMPLE PROMISSORY NOTE — DELAWARE
Before you use this: This form is for one unsecured private loan to an individual for personal or household use, with principal of $100,000 or less. The lender must make no more than five loans in any 12-month period. Before signing, enter the Federal Reserve discount rate including any surcharge and choose a fixed rate no more than five percentage points above it. No added lending charge is allowed under this form.
Date: [__/__/____]
Lender: [LENDER FULL LEGAL NAME], [ADDRESS]
Borrower: [BORROWER FULL LEGAL NAME], [ADDRESS]
Principal advanced: $[AMOUNT] (not more than $100,000)
Advance date: [__/__/____]
Number of loans made by Lender during the preceding 12 months, including this loan: [____] (not more than 5)
Payment address or account: [________________________________]
Federal Reserve discount rate, including surcharge, checked on [__/__/____]: [____]%
Maximum rate for this form (line above + 5 percentage points): [____]%
Agreed annual simple interest rate (must not exceed maximum): [____]% (enter 0 for an interest-free loan)
Promise to pay
This Note becomes effective when Lender advances the principal to Borrower on the advance date recorded above. Borrower promises to repay only the amount actually advanced, plus interest calculated only on unpaid principal at the agreed annual simple rate shown above. If no funds are advanced, Borrower owes nothing under this Note. Interest begins on the advance date. For each day, interest equals unpaid principal multiplied by the agreed annual rate divided by 365 if that day falls in an ordinary calendar year, or by 366 if it falls in a leap calendar year. Interest does not compound. No origination fee, late fee, default interest, or prepayment penalty is charged. The parties intend all amounts payable for making this loan to be shown here.
Payment schedule
Borrower will pay $[AMOUNT] first on [__/__/____] (choose a date after the advance from the 1st through the 28th), then on that same day of each following month until the final due date or earlier full payment. No installment exceeds the remaining principal and accrued interest then due. The entire remaining principal and accrued interest are due on [__/__/____] (on or after the first scheduled payment date). Payments apply first to accrued interest and then to principal. Borrower may pay early in whole or in part without penalty; a partial early payment does not postpone the next scheduled due date unless both parties sign a change.
Missed payment
If a payment is more than [____] days late, Lender may give Borrower written notice describing the missed amount. If Borrower does not pay it within [____] days after receiving the notice, Lender may declare the unpaid principal and accrued interest immediately due. No additional default charge applies. Lender may pursue payment through lawful remedies, subject to applicable limitation periods and collection law.
Other terms
This is an unsecured obligation. Any amendment must be in writing and signed by Borrower and Lender. Delaware law governs. Notices may be delivered personally or mailed to the addresses above, or to a replacement address given in writing. This note records the entire payment promise between these parties for this advance.
Borrower signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]
Lender acknowledgment of terms and advance: ______________________________ Date: [__/__/____]
Printed name: [________________________________]
Delaware law reference
Under 5 Del. C. § 2202(a), a person making no more than five loans in any 12-month period is not deemed to transact the business of lending money, and those unlicensed loans ordinarily fall under 6 Del. C. Chapter 23. Section 2301(a) permits written interest no more than five percentage points above the Federal Reserve discount rate including surcharge. The parties must complete the rate calculation above before signing. A judgment on an agreement governed by § 2301(a) bears the lesser of the contract rate or the statutory discount-rate-plus-five rate after judgment; the judgment controls.
10 Del. C. § 8109 permits an action arising from a promissory note within six years after the cause of action accrues.
About this template
- Last updated
- September 30, 2026
- Citations checked
- October 2, 2026
- Jurisdiction
- Delaware
- Category
- Financial & Banking
Legal authority
- 6 Del. C. § 2301(a)
- 5 Del. C. § 2202(a)
- 10 Del. C. § 8109
Financial and banking documents govern loans, security interests, account agreements, and commercial transactions between lenders, borrowers, and financial institutions. Promissory notes, guaranties, security agreements, and UCC filings have precise legal requirements, and mistakes can leave a lender unsecured or a borrower on the hook for more than they agreed to. Well-drafted finance paperwork protects both sides and keeps the deal enforceable if something goes wrong later.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on October 2, 2026.
6 Del. C. § 2301(a), contract interest (checked October 2, 2026): "Any lender may charge and collect from a borrower interest at any rate agreed upon in writing not in excess of 5% over the Federal Reserve discount rate including any surcharge thereon."
6 Del. C. § 2301(a), judgment interest (checked October 2, 2026): "any judgment entered on agreements governed by this subsection, whether the contract rate is expressed or not, shall, from the date of the judgment, bear post-judgment interest of 5% over the Federal Reserve discount rate including any surcharge thereon or the contract rate, whichever is less."
5 Del. C. § 2202(a) (checked October 2, 2026): "a person that makes not more than 5 loans within any 12-month period shall be deemed not to be transacting the business of lending money. Except as otherwise provided by law, loans made by any such unlicensed lender shall fall under Chapter 23 of Title 6."
10 Del. C. § 8109 (checked October 2, 2026): "When a cause of action arises from a promissory note, bill of exchange, or an acknowledgment under the hand of the party of a subsisting demand, the action may be commenced at any time within 6 years from the accruing of such cause of action."
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