Ƶ

Promissory Note For Lending Money To Friend for Australia

Promissory Note For Lending Money To Friend Template for Australia

A Promissory Note for lending money to a friend is a legally binding document used in Australia that formalizes a personal loan arrangement between two individuals. This document outlines the fundamental terms of the loan, including the principal amount, any applicable interest, repayment schedule, and consequences of default. Governed by Australian contract law and relevant state legislation, it provides a clear framework for friendly lending while maintaining legal enforceability. The document balances the informal nature of lending between friends with the necessary legal requirements to protect both parties' interests.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Promissory Note For Lending Money To Friend

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Promissory Note For Lending Money To Friend?

A Promissory Note For Lending Money To Friend is essential when individuals wish to formalize a personal loan arrangement in Australia. This document type serves as a legally binding record of the debt and helps prevent misunderstandings by clearly stating the loan terms, repayment schedule, and obligations of both parties. It's particularly useful for significant loan amounts where verbal agreements would be insufficient. The document provides protection for both the lender and borrower while maintaining the friendly nature of the arrangement. Governed by Australian contract law, it includes essential elements such as the loan amount, interest (if any), repayment terms, and default provisions, while remaining simpler than commercial loan agreements. This type of promissory note is commonly used when friends or family members engage in personal lending and want to ensure clear documentation of the arrangement.

What sections should be included in a Promissory Note For Lending Money To Friend?

1. Parties: Identifies the lender and borrower with full legal names and addresses

2. Background: Brief context of the friendly loan arrangement and purpose

3. Definitions: Key terms used in the document including 'Principal Sum', 'Interest Rate', 'Maturity Date'

4. Promise to Pay: Core promise by borrower to repay the specified amount, including the principal sum and any interest

5. Loan Amount and Interest: Clearly states the principal amount being borrowed and any applicable interest rate

6. Repayment Terms: Specifies payment schedule, installment amounts, and due dates

7. Default: Defines what constitutes default and its consequences

8. Governing Law: Specifies that Australian law governs the agreement

9. Signatures: Space for dated signatures of both parties and witnesses

What sections are optional to include in a Promissory Note For Lending Money To Friend?

1. Security: Include when specific assets are provided as security for the loan

2. Early Repayment: Include when allowing early repayment options without penalty

3. Late Payment Fees: Include when parties agree on specific penalties for late payments

4. Assignment: Include when transfer of rights under the note needs to be addressed

5. Amendment Process: Include when parties want to specify how changes to the agreement can be made

6. Dispute Resolution: Include when parties want to specify specific dispute resolution procedures

What schedules should be included in a Promissory Note For Lending Money To Friend?

1. Payment Schedule: Detailed breakdown of payment dates and amounts if installment payments are agreed

2. Security Details: If applicable, detailed description of any assets provided as security

3. Loan Calculation: Breakdown of interest calculations and total repayment amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses



















Relevant Industries

Financial Services

Legal Services

Personal Banking

Consumer Finance

Wealth Management

Private Lending

Financial Advisory

Professional Services

Relevant Teams

Legal

Compliance

Private Banking

Personal Finance

Risk Management

Debt Recovery

Consumer Lending

Document Management

Advisory Services

Relevant Roles

Financial Advisor

Personal Banking Officer

Legal Counsel

Wealth Manager

Financial Planner

Lawyer

Paralegal

Consumer Credit Officer

Debt Recovery Specialist

Risk Management Officer

Private Client Advisor

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Promissory Note For Real Estate Purchase

An Australian-compliant financial instrument documenting a buyer's promise to pay for real estate purchase, including payment terms and security interests.

find out more

Promissory Note For Vehicle Purchase

An Australian-compliant promissory note documenting a buyer's legally binding promise to pay for a vehicle purchase, including payment terms and vehicle details.

find out more

Promissory Note

An Australian-compliant financial instrument containing a written promise to pay a specified sum of money under defined terms and conditions.

find out more

Promissory Note For Remaining Balance

An Australian law-compliant financial instrument documenting a promise to pay a remaining balance after initial payment, including specific repayment terms and conditions.

find out more

Hospital Promissory Note

An Australian-compliant promissory note documenting a patient's commitment to pay for hospital services received, incorporating healthcare regulations and payment terms.

find out more

Form Of Secured Promissory Note

An Australian law-governed financial instrument combining a promise to pay with security interests, documenting a secured debt obligation between lender and borrower.

find out more

Promissory Note For Rent Owed

An Australian legal document establishing a tenant's binding promise to pay outstanding rent arrears, governed by federal and state legislation.

find out more

Note Payable Form

An Australian-compliant legal document evidencing a promise to pay a specific sum of money, detailing payment terms and conditions between a borrower and lender.

find out more

Guarantor Promissory Note

An Australian law-governed document combining a promissory note with a guarantee agreement, where a guarantor backs the maker's promise to pay a specified sum to the payee.

find out more

Promissory Note For Services Rendered

An Australian legal document combining a promissory note with acknowledgment of services rendered, providing a binding payment promise governed by federal and state laws.

find out more

Mortgage Note Form

An Australian legal document that establishes the terms and conditions of a property-secured loan between a lender and borrower, compliant with federal and state mortgage regulations.

find out more

Unconditional Promissory Note

An Australian law-governed financial instrument containing an unconditional written promise to pay a specific sum of money, regulated under the Bills of Exchange Act 1909.

find out more

Cash Promissory Note

An Australian-compliant financial instrument containing a written promise to pay a specific sum of money, governed by the Bills of Exchange Act 1909.

find out more

Bill Of Sale With Promissory Note For Automobile

An Australian legal document combining vehicle sale documentation with a promissory note for installment payments, conforming to Australian federal and state vehicle transfer regulations.

find out more

Installment Promissory Note

An Australian law-governed document establishing a formal promise to repay a specified sum through scheduled installment payments, including interest terms and security provisions.

find out more

International Promissory Note

An Australian law-governed formal promise to pay a specified sum in an international context, compliant with the Bills of Exchange Act 1909.

find out more

Simple Promissory Note For Personal Loan

An Australian-compliant promissory note documenting terms and conditions for a personal loan agreement between a lender and borrower.

find out more

Loan Note

An Australian law-governed financial instrument documenting terms of a loan between an issuer and noteholder, including principal, interest, and repayment conditions.

find out more

Unsecured Promissory Note

An Australian law-governed financial instrument documenting an unsecured promise to pay a specified sum of money, with defined repayment terms and conditions.

find out more

Standard Promissory Note

An Australian-compliant financial instrument documenting a formal promise to pay a specified sum of money under defined terms and conditions.

find out more

Promissory Note With Notary

An Australian legal document containing a notarized promise to pay a specified sum of money, governed by federal and state legislation including the Bills of Exchange Act.

find out more

Promissory Note For Delayed Payment

An Australian-compliant financial instrument documenting a promise to pay a specified sum at a future date, governed by federal and state legislation.

find out more

Promissory Letter For Hospital Bill

An Australian-compliant legal document where a patient or guarantor formally commits to paying outstanding hospital bills according to specified terms and conditions.

find out more

Negotiable Promissory Note

An Australian-compliant financial instrument containing a written promise to pay a specified sum, governed by the Bills of Exchange Act 1909 (Cth).

find out more

Hospital Bill Promissory Note

An Australian-compliant promissory note documenting a patient's legally binding commitment to pay outstanding hospital bills according to agreed terms.

find out more

Financial Promissory Note

An Australian law-governed financial instrument documenting a formal promise to pay a specified sum of money, including payment terms and conditions.

find out more

Convertible Promissory Note

An Australian law-governed debt instrument that converts to equity shares under specified conditions, commonly used for startup bridge financing.

find out more

Balloon Promissory Note

An Australian-compliant financial instrument documenting a debt obligation with regular payments and a large final balloon payment, including all terms and conditions of the lending arrangement.

find out more

Shareholder Promissory Note

An Australian law-governed promissory note documenting a company's promise to pay a specified sum to a shareholder, including payment terms and security arrangements.

find out more

Promissory Note With Personal Guarantee

An Australian-law governed financial instrument combining a promise to pay a specified sum with a personal guarantee, establishing primary and secondary payment obligations.

find out more

Promissory Note Secured By A Mortgage

An Australian legal document combining a promissory note with a mortgage security interest, establishing both a promise to pay and a property security arrangement under Australian federal and state laws.

find out more

Promissory Note Repayment Schedule

An Australian legal document that outlines the structured repayment terms of a debt, including payment schedules, amounts, and interest calculations.

find out more

Promissory Note Letter

An Australian law-governed financial instrument documenting a written promise to pay a specific sum of money, including payment terms and conditions.

find out more

Payable On Demand Promissory Note

An Australian law-governed financial instrument containing an unconditional promise to pay a specified sum on demand to the payee.

find out more

Full Recourse Promissory Note

An Australian law-governed financial instrument containing an unconditional promise to pay a specified sum, with full recourse rights against the maker's assets.

find out more

Personal Guarantee On Promissory Note

An Australian law-governed personal guarantee agreement securing a promissory note, establishing the guarantor's commitment to fulfill the debtor's obligations upon default.

find out more

Promissory Note For Business Purchase

An Australian legal document establishing a promise to pay a specified sum for a business purchase, governed by federal and state laws.

find out more

30 Day Promissory Note

An Australian-compliant financial instrument documenting a promise to pay a specified sum within 30 days, governed by federal legislation.

find out more

Interest Only Promissory Note With Balloon Payment

An Australian-governed promissory note featuring interest-only payments with a final balloon payment, incorporating required consumer protection elements and payment terms.

find out more

Business Promissory Note

An Australian-law governed financial instrument documenting a business's written promise to pay a specified sum under defined terms and conditions.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it