A Wisconsin promissory note is a written agreement for the lending of money between a lender and a borrower. The document will relay the terms of the loan, including the principal sum, interest rate, payment schedule, and late penalties (if applicable). The borrower may be required to provide the physical collateral of their personal property that will be given to the lender to cover their expense in the event that the loan isn’t paid back on time.
In Wisconsin, interest on an unpaid principal balance of a promissory note may be calculated at 0.27% of the annual rate for the number of days that it is past due. However, this additional interest must be disclosed in the document to be applicable (§ 138.045).
- Interest & Usury Laws: Chapter 138 – Money and Rates of Interest
- Usury Rate without Contract (§ 138.04): 5%
- Usury Rate with Contract (§ 138.05(1)(a)): 12%
- Usury Rate for Loans Under $3000 by Licensees (§ 138.09(7)(bn)(1)): 23% or 6% over the federal rate, whichever is greater.
- Usury Rate for Loans Over $3000 by Licensees (§ 138.09(7)(bn)(2)): 21% or 6% over the federal rate, whichever is greater.
- Usury Rate for Payday Loans After Maturity Date (§ 138.14(10)(a)): 2.75%/month
- Usury Rate for Consumer Credit Charges: