An Alabama promissory note template is a legally binding contract that establishes that money was lent from a lender to a borrower on the basis that the balance (plus interest) be paid back over time. The agreement confirms many key points of the loan in writing, including the contact information of the parties, the amount ($) lent, the interest rate (%), the value of each payment, and the time the borrower has to pay it back.
Secured Promissory Note – Requires the borrower to pledge one of their belongings as collateral. The lender keeps the collateral (such as holding the title to a vehicle) until the balance is paid off.
Unsecured Promissory Note – A less stringent loan agreement that doesn’t require the borrower to provide security. Often formed between those that trust one another, such as family and friends.