An Alabama promissory note is a written promise by a borrower to repay money to a lender, usually with interest. Section 8-8-1 of the Alabama Code limits the interest rate on a loan.[1] A note that charges more than the law allows cannot be enforced except as to the principal.[2.1] You can fill out the template below online or download it as a PDF.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Alabama law. If you notice an error or outdated information, please contact us.
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Alabama limits the interest on a loan under Ala. Code § 8-8-1. The limit depends on whether the loan is made by written contract, so the first question for any lender is whether the loan will be put in writing. The two rates are listed below.
The rate of interest by written contract is not to exceed $8 upon $100 for one year and at that rate for a greater or less sum or for a longer or shorter time
In plain words, the written-contract limit scales with the loan. A larger or smaller sum, or a longer or shorter term, carries the same rate. Put another way, a one-year loan of $100 may carry up to $8 in interest under a written contract, and the same ratio applies to a larger or smaller sum. Without a written contract, the same loan is limited to $6.[1]
Except as otherwise permitted by law, a contract that charges a higher rate of interest than the law prescribes is usurious. It cannot be enforced except as to the principal.[2.1]
A borrower at a usurious rate never has to pay more than the principal sum borrowed. Any interest already paid is deducted from the principal, and judgment is entered for the balance only.[2.2]
| Document Name | Alabama Promissory Note Form |
| Other Name | AL Promissory Note |
| Max. Rate | 8% a year in a written contract ($8 upon $100), 6% a year otherwise ($6 upon $100)[1] |
| Relevant Laws | Alabama Code, Section 8-8-1, Alabama Code, Section 8-8-12 |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
A promissory note (often called debt note) is a handy money instrument used by businesses and individuals across all states as a funds resource and a substitute for loan providers. Learn about the most common US states searched by our users regarding promissory note forms.
The template is a simple three-page PDF form for a loan between one borrower and one lender. It has fields for the loan itself, the interest rate, the payment schedule and the signatures. You can complete the promissory note on screen, print it, and keep a copy for your records.
The promissory note template is a fillable PDF, so you can type each answer straight into the form. The finished promissory note is a plain loan document, and a payment schedule, if you choose one, goes on Exhibit A.
Because the promissory note is a simple document, most people complete it in about ten minutes. You can reuse the template for a new loan, since each promissory note starts from a blank copy.
A promissory note puts the terms of a loan on paper, so both parties work from the same record. A simple note is easy to read, easy to sign and easy to store. Whether the loan is between family, friends or a small business, a clear promissory note helps each side remember what was agreed.
A secured note names collateral, which is property that backs the loan, while an unsecured note names none. An unsecured promissory note is the simpler form to complete, since there is no property to describe. A secured note takes more work. The collateral goes on the form, and the template refers to separate Security Documents. Choose the option that matches what you and the other party agreed.
Before you fill out the promissory note, agree the sum borrowed, the interest rate, the due day and the maturity date with the other party. Then print two copies of the finished promissory note, so the borrower and the lender each keep a signed original. Keep a simple payment record next to the promissory note, so it is easy to show what has been paid on the loan.
The Alabama promissory note PDF has 28 fillable fields. Work through it in order, from the date and principal amount to the two signatures. The six steps below follow the form, and each one shows an Alabama promissory note example filled in with sample entries.
The screenshots under each step show the FormsPal Alabama promissory note template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
For a general overview of the document and a template for every state, see our sample promissory note template.
These questions cover the two points readers ask about most, the rules and the legal requirements of a promissory note. Both answers are taken from the Alabama Code sections listed under Sources below.
In Alabama, the interest rate in a written promissory note is not to exceed $8 upon $100 for one year.[1] A rate above what the law prescribes makes the contract usurious, and it cannot be enforced except as to the principal.[2.1]
The rate of interest by written contract is not to exceed $8 upon $100 for one year. The same rate applies to a greater or less sum or a longer or shorter time.[1]
Other Promissory Note Forms by State
General information, not legal or tax advice.
Unless noted otherwise, the sources below are from the Ala. Code.
