Promissory Note in Pennsylvania

A written promise to repay a personal loan, with the amount, interest and payment schedule. States limit how much interest a lender can charge; check your state's rules below before you set the rate.

What Pennsylvania law says

Maximum interest rate (usury limit)	For loans of $50,000 or less, the maximum lawful interest rate is 6% a year unless an exception applies. The cap does not apply to obligations over $50,000, unsecured, uncollateralized loans over $35,000, or business loans of any amount, and residential mortgages have a separate floating cap. When a law or document refers to the 'legal rate of interest' or says 'with interest' without a rate, the rate is 6% a year. Source: Loan Interest and Protection Law, Act of Jan. 30, 1974, P.L. 13, No. 6, §§ 201, 202, 301
Time limit to sue on a written contract	4 years for an action on a contract, obligation or liability founded on a writing. A written instrument under seal has a 20-year limit. 20-year rule: https://www.palegis.us/statutes/consolidated/view-statute?txtType=PDF&ttl=42&div=0&chapter=55&section=29&subsctn=0 Source: 42 Pa.C.S. 5525(a)(8); 5529(b)(1)

Maximum interest rate (usury limit)

For loans of $50,000 or less, the maximum lawful interest rate is 6% a year unless an exception applies. The cap does not apply to obligations over $50,000, unsecured, uncollateralized loans over $35,000, or business loans of any amount, and residential mortgages have a separate floating cap. When a law or document refers to the 'legal rate of interest' or says 'with interest' without a rate, the rate is 6% a year.

Source: Loan Interest and Protection Law, Act of Jan. 30, 1974, P.L. 13, No. 6, §§ 201, 202, 301

Time limit to sue on a written contract

4 years for an action on a contract, obligation or liability founded on a writing. A written instrument under seal has a 20-year limit.

20-year rule: https://www.palegis.us/statutes/consolidated/view-statute?txtType=PDF&ttl=42&div=0&chapter=55&section=29&subsctn=0

Source: 42 Pa.C.S. 5525(a)(8); 5529(b)(1)

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PROMISSORY NOTE

Amount: $[principal amount] Date: [date] Place: [city, state]

For value received, [borrower name], of [borrower address] ("Borrower"), promises to pay [lender name], of [lender address] ("Lender"), the sum of $[principal amount], with interest at [rate]% per year.

Payments: [e.g. $[amount] per month starting [date] until paid in full / one payment of the full amount on [due date]].

Late payment: [late fee or 'none']. Prepayment: Borrower may prepay all or part at any time without penalty.

If Borrower misses a payment for [number] days, Lender may [declare the full balance due].

Borrower signature: ____________________ Date: [date]

[Co-signer signature, if any] [Notary acknowledgment, if you choose to use one]

Promissory Note for other states · Pennsylvania tenant rights

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.