An Illinois promissory note is a written promise to repay a loan, signed by the borrower and made out to the lender. This Illinois promissory note template records the amount borrowed, the interest rate and the payment dates. Fill it out online or download the PDF.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Illinois law. If you notice an error or outdated information, please contact us.
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A promissory note names the borrower and the lender, the sum lent, the interest rate and the due date, and the borrower signs it. This holds for a free printable promissory note for a personal loan as well. The Illinois template lets you pick one of two types.
Apart from the collateral lines, both types ask for the same details.
The Illinois Interest Act, 815 ILCS 205, sets the interest a promissory note may charge. In a written contract, the parties may agree to an annual percentage rate of 9%, or any less sum, unless a statute provides otherwise. The maximum rate of interest that may lawfully be contracted for is determined by the law in force when the contract is made.[1.2]
In all written contracts it shall be lawful for the parties to stipulate or agree that an annual percentage rate of 9%, or any less sum, shall be taken and paid upon every $100 of money loaned or in any manner due and owing from any person to any other person or corporation in this state
In plain words, a written note may carry interest of up to 9% a year, and any lower rate is fine too. Two other rules cover particular kinds of credit:
| Document Name | Illinois Promissory Note Form |
| Other Name | IL Promissory Note |
| Max. Rate | 9% annual percentage rate in a written contract (general limit) |
| Relevant Laws | Illinois Interest Act, 815 ILCS 205/4 |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
A promissory note (often referred to as just note) is considered a simple lending tool used by both individuals and companies through all states as a funds resource and a substitute for banks. Discover more about the most popular states searched by our website users concerning promissory note templates.
Beyond the general 9% ceiling, the Illinois Interest Act sets rules on how interest is counted, who may collect it, when a prepayment charge is unlawful and how a service member's loan is limited. Each rule below is cited to its section.
A lender who knowingly contracts for or receives unlawful interest, discount or charges in connection with a loan of money can owe the borrower a penalty. The borrower may recover twice the total of the interest, discount and charges set by the loan contract or paid by the borrower, whichever is greater, plus reasonable attorney's fees and court costs that a court assesses against the lender.[1.6]
A borrower must raise usury by plea or in writing. The defense of usury is not allowed unless the borrower relying on it sets it up by plea or files in the case a written notice stating the intent to defend on the ground that the contract is usurious.[1.7]
The FormsPal Illinois promissory note template is a three-page document. Page 1 holds the loan details and the payment terms, page 2 holds the security terms and the default terms, and page 3 holds the signature blocks. This section summarizes what the printed text of the template says, so you know what you are signing.
The borrower promises to pay the principal amount, or the unpaid principal of the loans made if that is less. Interest runs on the unpaid principal from the date the loan is made until it is repaid in full, at the per annum rate you enter.
On page 2 you initial one of two choices. An unsecured promissory note rests on the borrower's promise alone. A secured promissory note lists the collateral, meaning the asset or assets that back the loan.
If you choose a secured note, the template makes the borrower sign the security documents the lender reasonably requests. The borrower states that the collateral is unencumbered and that the borrower owns it. The borrower agrees not to sell, transfer or further encumber the collateral, and to keep it insured, until the note is repaid in full. When the note is repaid, the lender's security interest in the collateral ends.
These are the template's own terms. They are not a statement of what Illinois law requires. If you want to change a term, talk to a lawyer licensed in Illinois before you sign.
Choose a secured promissory note when the loan is large or the lender wants something to fall back on. Choose an unsecured promissory note when the loan is small or the two parties trust each other. The template covers both, and the only difference in the form is the collateral on page 2.
Whichever you pick, finish the note the same day the money changes hands. Each party should keep a signed copy, and the borrower should keep a record of every payment made.
The Illinois promissory note template has 28 fillable fields. The steps below follow the form's own parts, from the top of page 1 to the signature blocks on page 3.
Fill it in on screen with the online PDF editor or print it and write by hand.
The screenshots under each step show the FormsPal Illinois 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.
Questions about an Illinois promissory note usually come down to the interest rate and what happens if a lender charges too much. The answers below cover the 9% ceiling, the other limits in the Interest Act and what the document needs.
A written contract may stipulate an annual percentage rate of 9%, or any less sum, so 30% is far above the general ceiling.[1.2] Some credit follows its own rule, such as the 1 1/2% per month ceiling on revolving credit.[1.3] A lender who knowingly contracts for or receives unlawful interest can owe the borrower twice the total of the interest, discount and charges, plus attorney's fees and court costs.[1.6]
Yes. In a written contract the parties may agree to an annual percentage rate of 9%, or any less sum. The maximum rate of interest that may lawfully be contracted for is determined by the law in force at the time the contract is made.[1.2]
Usury law decides whether the interest a note may charge is capped, and at what rate. In Illinois, the Interest Act sets these limits:
The Illinois statute covered on this page limits the interest a note may charge, so the first requirement is a rate within those limits. A written note may stipulate 9%, or any less sum.[1.2] On an installment loan, interest is computed on the entire principal from the date of the loan to the last installment.[1.5] Interest is counted by calendar months, and a day under a month is a thirtieth part of a month.[1.8]
In practice, a note also names the borrower and the lender, the sum lent, the repayment schedule and the due date. The borrower signs it.
General information, not legal or tax advice.
Other Promissory Note Forms by State
The rules on this page come from the Illinois Interest Act, 815 ILCS 205. Each bracketed number in the text points to the section listed below, so you can check the statute's own wording yourself.
