Texas Promissory Note Templates

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Updated June 13, 2022

A Texas promissory note template is a document that records the major details regarding a money lending transaction between a lender and a borrower. The documents are signed by all parties involved as well as a witness to give it legal validity.

Usury Rate – The parties may agree in writing to a maximum rate up to the weekly ceiling as published in the Texas Credit Letter. If no agreement exists, then the maximum is 10%.

LawsTex. Fin. Code Ann. § 302.001(b), §303.002

Types (2)

Secured Promissory Note – This template includes a section where an item is declared as security. This item should be of similar value as to the balance of the note and is only given to the lender if the borrower cannot recover from default.

Download: Adobe PDFMS Word (.docx)OpenDocument



Unsecured Promissory Note – Does not include a section for security, increasing financial risk for the lender. To help prevent a case in which the borrower defaults on the balance, the lender should be extra wary when selecting a borrower. Credit checks and personally knowing the borrower are two things that can substantially improve the transaction for the lender.

Download: Adobe PDFMS Word (.docx)OpenDocument


Usury Rate

Under Texas law, the legal interest rate is 6% per year if it is not in writing. The maximum interest rate is generally 18% per year. TX FIN § 303.009

(Video) What is a Texas Promissory Note?

How to Write –

Step 1 – Download the Texas note form – Proceed:

  • Enter the document start date- in dd/m/yy format
  • The Borrower’s name and full mailing address
  • AND
  • Lender’s name and complete mailing address
  • AND
  • Enter the amount of the principal portion of the note
  • Provide the unpaid amount of the annual percentage rate

Step 2 – Payments – Enter:

  • The full balance of the note due upon the due date
  • As well, include the amount of all late fees and accrued interest

Installments –

Payment method – Check the applicable box – Proceed by entering:

  • The total amount to be paid in full when the note is due
  • The total amount of the principal
  • Select payment frequency (by checking the applicable box)
  • Enter the amount required of the borrower for late fees

Step 3 –  Security-

  • Select “Unsecured” or “Secured” and check the box
  • If the requirement is that the note be“secured,” submit the description of the property

Step 4 – Titled Sections and Subsections –

  • Interest due in the Event of Default
  • Allocation of Payments
  • Prepayment
  • Acceleration (and 6A.)
  • Attorney’s Fees and Costs
  • Waiver of Presentments
  • Non-Waiver
  • Severability
  • Integration
  • Conflicting Terms
  • Notice
  • Co-Signer – Co-signer’s name
  • Execution
  • Governing Law – (As related to the laws in the state of Texas)

Step 5 – Signatures – Submit in the presence of a witness– Enter:

  • The Lender’s signature
  • The date of signature – in mm/dd/yyyy format
  • Print full name
  • AND
  • The Borrower’s signature
  • The date of signature – in mm/dd/yyyy format
  • Print full name
  • AND
  • Co-signer’s signature (if a co-signer is required for the note)
  • Date signature in dd/mm/yyyy format
  • Print full name
  • AND
  • The Witness’ signature
  • Date of witness’ signature – enter in mm/dd/yyyy format
  • Print full  name