What is a Demand Promissory Note?
There are different types of transactions that take place around us. Most of them are covered by agreements that protect the rights of both agreeing parties. The crediting and debiting is one of such agreements. The debtor promised to pay a certain amount on a timely basis. The interest rate is also settled at times and the debtor also makes it clear that he will be paying that amount along with principal amount. Any failure of payment can lead to forfeiting in the end. The debtor will be held responsible and he/she will be paying all charges that may arise thereof.
The promissory note protects the creditor and makes it clear that what sort of agreement has taken place between two entities. The promissory note conveys that to the creditor that he will remain advantageous from all perspectives. It also clearly tells that how much of the amount is being paid to the debtor and how much of the interest it will have to pay along with the principle amount. Hence the note indirectly makes it evident that what has been allotted to a person at what rate of interest. The promissory note thus proves useful for both agreeing parties and make things easy to execute for both of them.
Demand Promissory Note Format
There is hardly something more useful than a demand promissory note format when we speak of a monetary transaction. The process of debiting and crediting cannot just get completed for any of the parties without considering such a promissory note.
Create your own printable Demand Promissory Note by using the following template,