A promissory note is a legally binding document that outlines a promise from one party (the issuer or maker) to pay a specific sum of money to another party (the payee) at a predetermined future date.
This financial instrument includes details such as the amount owed, interest rate (if applicable), maturity date, and the terms of repayment.
Promissory notes are commonly used in lending arrangements, business transactions, or when individuals want to formalize a debt obligation. Promissory notes serve as evidence of a debt and provide legal protection to both the borrower and lender.
