An Indiana promissory note is a written promise by a borrower to repay a set sum to a lender, usually with interest. When no rate is agreed, Indiana sets interest at 8% a year.[1] For a consumer loan, a lender may contract for a finance charge of up to 25% a year.[2] Fill out the free template online, or download the PDF and print it to sign.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Indiana law. If you notice an error or outdated information, please contact us.
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Indiana law sets the interest on a promissory note in two ways. A default rate applies when no rate is agreed, and a cap applies to a consumer loan. The default is 8% a year, and the cap is 25% a year.[1][2]
With respect to a consumer loan, a lender may contract for a loan finance charge, calculated according to the actuarial method, not exceeding twenty-five percent (25%) per year on the unpaid balances of the principal.
The 25% cap is written for consumer loans.[2]
Subject to the provisions on rebate upon prepayment set forth in section 13 of this chapter, the debtor may prepay in full the unpaid balance of a consumer loan, refinancing, or consolidation at any time without penalty.
In plain words, a borrower on a consumer loan, refinancing or consolidation may pay off the whole unpaid balance at any time without a penalty. The rebate rules in section 13 of the same chapter still apply.[3] The template's own wording is similar. It lets the borrower prepay at any time without a penalty or premium.
| Document Name | Indiana Promissory Note Form |
| Other Name | IN Promissory Note |
| Interest Rates | 8% a year if the parties agree on no rate[1] Up to 25% a year for a consumer loan[2] |
| Relevant Laws | Indiana Code, Section 24-4.6-1-102, Indiana Code, Section 37-2-4-4(a), Indiana Code, Section 37-2-4-12(a) |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
People and businesses usually require promissory notes to borrow money from other individuals and companies and steer clear of credit institutions. Here are some of the most popular local promissory notes looked up by the users of this site.
The FormsPal Indiana promissory note template is a three-page fillable PDF for a loan between one borrower and one lender. It has 28 fields for the amount, the rate, the payment schedule, the maturity date and the signatures. You can complete it on screen, print it, and keep a copy with your other loan documents.
The note is a short loan agreement, so read the full agreement with the other party, including all the terms, before either of you signs.
A secured note lists collateral, which is property that backs the loan. An unsecured note lists none. With a secured note, the borrower has pledged specific property, so the lender has security if the borrower stops paying.
An unsecured note is simpler to complete, but the lender has no pledged property to rely on if the borrower does not repay. For that reason, unsecured notes are often used between relatives or friends who trust each other.
On the Indiana form, page 2 has one box for each choice. A secured note has lines where you describe the collateral.
Many people choose to have a promissory note notarized, so that a notary checks who is signing. You can see what a notary adds in a sample notary acknowledgment. If you have doubts about the legal terms, a lawyer can review the note before you sign.
Before you fill out the promissory note, agree the loan terms with the other party: the amount borrowed, the rate, the due day, the payment schedule and the maturity date. Then print two copies of the finished note, so the borrower and the lender each keep a signed original.
Never sign without reading every clause and agreeing to all the terms. Write clearly, send the other party a copy if you complete the form online, and keep a simple payment record next to the note, so it is easy to show what has been paid.
The Indiana promissory note PDF has 28 fillable fields. Work through it in order, from the date and amount to the two signatures. The six steps below follow the form, and each one shows an Indiana promissory note example filled in with sample entries. If you download the PDF, you can fill it in with the online PDF editor.
The screenshots under each step show the FormsPal Indiana 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 interest limits in Indiana state law that readers ask about most, from the maximum rate to what a 30% rate means. Each answer ends with a number that points to its entry under Sources at the bottom of the page.
Two rates apply, depending on the loan:
It depends on the loan. A consumer loan may carry a finance charge of up to 25% per year on the unpaid balances, calculated according to the actuarial method.[2] If nothing was agreed, the rate is 8% per year.[1]
For a consumer loan, the cap in IC 37-2-4-4(a) is 25% per year, so a 30% rate is above it.[2] That cap is written for consumer loans, so check what kind of loan you are making before you set a rate.
General information, not legal or tax advice.
