A Rhode Island unsecured promissory note allows borrowers to secure loans without the need to pledge their assets as collateral. Once completed, the document will state the repayment schedule, interest charges, fees, and all other provisions needed to render the agreement binding upon the signatories.
Unsecured loans come with a higher risk to lenders, so they are generally reserved for loans between family members and close friends. Lenders providing loans that are less than five thousand dollars must adhere to the interest rate maximums as stated in § 19-14.2-8.
Secured Promissory Note – A lending agreement that requires a borrower to put up assets as collateral.