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Date: _________________________

For value received, the undersigned, _____________________________, (“Borrower”), located at ________________________________________, __________________________________, ______________________, promises to pay to the order of _____________________________ (“Lender”), located at ________________________________________, __________________________________, ______________________, the sum of $_________, plus interest, accruing at the rate of ______% annually, on the unpaid balance.

1. Payment. Payments shall me made in monthly installments of $__________, beginning on _________________________, and continuing until _________________________, (the “Due Date”), at which time the remaining unpaid principal and interest shall be due in full. All payments shall first be applied to outstanding late fees, then to interest and the balance to the principal amount.

2. Late Fee. If payment is not made within __________ days as agreed upon in the payment terms, Borrower shall pay an additional late fee of $ __________. This late fee shall be paid as liquidated damages in lieu of actual damages, and not as a penalty. Payment of this late fee shall, under no circumstances, be construed to cure any default arising from or relating to such late payment.

3. Prepayment. The Borrower may prepay this Note, in whole or in part, prior to the Due Date without premium or penalty. All prepayments shall be first applied to outstanding late fees, then to accrued interest and thereafter to the principal loan amount.

4. Acceleration of Debt. If Borrower fails to make any payment under the terms of this Note when due, the remaining unpaid balance and any accrued interest shall become due immediately at the option of Lender.

5. Collection & Attorneys’ Fees. In the event of default of this Note by Borrower, Borrower shall pay to the Lender all costs of collection, including reasonable attorneys’ fees.

6. Default. Borrower will be in default if any of the following events occur: (i) if Borrower does not pay the full amount of each monthly payment when due; (ii) if Borrower is involved as a debtor in a bankruptcy proceeding; (iii) if Borrower becomes insolvent and is unable make the agreed-upon payments; (iv) at the death, dissolution, liquidation or incompetency of the Borrower; or (v) if Borrower makes any untrue statement to the Lender or misrepresentation for the purpose of obtaining or extending credit. In the event of default, this Note and any obligations of the Borrower to the Lender, shall become due immediately, without demand or notice.

7. Severability. If any provision or part of a provision of this Note is held to be illegal, invalid, or unenforceable by a court or other decision-making authority of competent jurisdiction, then the remainder of the provision will be enforced so as to affect the intention of the Parties, and the invalidity and enforceability of all other provisions in this Note will not be affected or impaired.

8. Waiver. Borrower waives presentment for payment, protest, and notice of protest and demand of this Note. The parties acknowledge that no breach of any provision of this Note shall be deemed waived unless evidenced in writing. A waiver of any one breach shall not be deemed as a waiver of any other breach of the same or any other provision of this Note. No failure or delay by Lender in exercising Lender’s rights under this Note shall be considered a waiver of such rights.

9. Assignment. Neither party may assign or delegate its rights or obligations pursuant to this Note without prior written consent of the other. Any assignment or delegation in violation of this section is void.

10. Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon Borrower’s successors and permitted assigns.

11. Notice. Any notice required hereunder shall be in writing and deemed to have been sufficiently given when delivered in person, by email, by facsimile, by a recognized national overnight courier service or by certified mail to the address of the respective party above.

12. Execution. This Note may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Execution and delivery of this Note may be evidenced by electronic means.

13. Governing Law. This Note shall be construed in accordance with the laws of the State of ______________________.

14. Amendment. There are no verbal or other agreements that modify or affect the terms of this Note. This Note may be amended and modified only by a written agreement signed by Borrower and Lender.

15. Guaranty. _____________________________ (“Co-Signer”) unconditionally guarantees all the obligations under this Note and agrees that any modifications of the terms of payment or extension of time of payment shall in now way impair its/his/her guarantee, and expressly agrees its/his/her guarantee of any modification or extensions of this Note.

IN WITNESS WHEREOF, this Note has been executed and delivered as of the date first written above.

Signed, the __________ day of _________________________, __________.


Borrower Signature

Borrower Printed Name


Co-Signer Signature

Co-Signer Printed Name


Lender Signature

Lender Printed Name


Please note that this article is not a substitute for professional legal advice; it does not create an attorney-client relationship, nor is it a solicitation to offer legal advice. We recommend you seek the appropriate legal advice from a practicing attorney licensed in your jurisdiction.

What is a Promissory Note with a Cosigner?

A promissory note that includes a cosigner is a note that makes more than one person responsible for the repayment of the loan. The cosigner agrees to be held responsible for the loan if the borrower does not pay.

When Should You Include a Cosigner with a Promissory Note?

You should include a cosigner with your promissory note if you are unsure of the borrower’s ability to repay the loan on her own. Maybe the borrower has little to no credit history, so it’s hard for you to judge from past behavior whether or not she would meet her obligations. Maybe you’re helping a friend out with a business loan, but you’re not very familiar with your friend’s business model or industry. In either of these cases, assuming you still want to lend your friend money, it may be good to require your friend to include a cosigner, someone with reliable credit history and a steady stream of income.

What Should be Included in a Promissory Note with a Cosigner?

Along with the standard terms of any promissory note (like amount borrowed, payment schedule, etc.), a promissory note that includes a cosigner must have the signature of the cosigner on the note. A promissory note with cosigner typically has language in the note where the cosigner guarantees the debt or agrees to all the same obligations and liabilities that the borrower is taking on.

Other names for this document include: promissory note with cosigner, loan co-signer agreement