Louisiana Promissory Note Template

Louisiana Usury Laws and Interest Limits

Louisiana's usury law, La. Rev. Stat. § 9:3500, caps the conventional interest on a loan at twelve percent per annum. The same section says interest is either legal or conventional, and that the interest must be fixed in writing. It does not apply to a loan made for commercial or business purposes.^[1]

• Rate cap. The amount of the conventional interest cannot exceed twelve percent per annum.^[1]
• In writing. The interest must be fixed in writing, and testimonial proof of it is not admitted in any case.^[1]
• Business loans. The article does not apply to a loan made for commercial or business purposes, or to deferring payment of an obligation for commercial or business purposes.^[1]
• Recovering extra interest. A person who pays a higher rate than the statute allows, as discount or otherwise, may sue for it within two years from the time of the payment. The statute makes an exception for the cases it provides otherwise.^[1]

The amount of the conventional interest cannot exceed twelve percent per annum.

Louisiana Promissory Note Form Details

Create a free high quality Louisiana Promissory Note online now!

Create and Print Online Now

Secured and Unsecured Louisiana Promissory Notes

The form lets you mark a Louisiana promissory note as secured or unsecured. A secured note names property that backs the loan. An unsecured note names none, so the lender relies on the borrower's promise alone to repay. FormsPal also has a general note payable template that is not tied to one state.

• Secured. The note describes the assets that guarantee repayment if the borrower fails to pay. Common examples are real property, jewelry, a motor vehicle, or a boat.
• Unsecured. The note names no collateral. If the borrower does not repay, the lender has no pledged property to rely on, so this type suits loans to family members or friends you trust.

What Does the Louisiana Promissory Note Template Include?

The FormsPal Louisiana 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 or print it and fill it in by hand.

• Page 1 holds the date, the principal amount, the name and address of the borrower and the lender, and the yearly interest rate.
• You choose a monthly or quarterly due day, then a fixed payment amount or an amortization period in years.
• The note names a maturity date, the day the loan comes due in full.
• Page 2 lets you mark the note unsecured, or secured by assets you list as collateral.
• Both parties sign on page 3, each with a printed name and title.

Before You Sign

Agree the loan terms with the other party first: the amount, the interest 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.

Read every line before you sign. Keep a simple record of each payment next to the note, so it is easy to show what has been paid.

How Do You Fill Out the Louisiana Promissory Note?

The Louisiana promissory note PDF has 28 fillable fields over three pages. 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 it 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 Louisiana 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.

1. Enter the date, amount, names and rate. On page 1, enter the date and the principal amount. Then add the name and address of the borrower and of the lender, and the yearly interest rate.

   

2. Choose the payment due day. Initial monthly or quarterly, then write the day number in the box beside your choice.

   

3. Choose the payment amount and set the maturity date. Initial a fixed payment amount or an amortization period in years, and fill in the amount or the number of years. The note refers to an Exhibit A that is not among the three pages, so attach your own schedule if you use one. Then enter the maturity date.

   

4. Mark the note unsecured or secured. On page 2, initial one box. If you pick secured, describe the asset on the Collateral lines.

   

5. Borrower signs. On page 3, the borrower signs on the By line under BORROWER, then prints their name and title.

   

6. Lender signs. The lender signs on the By line under LENDER, then prints their name and title. Each party keeps a signed copy.

   

Frequently Asked Questions

These answers come from Louisiana's usury statute, La. Rev. Stat. § 9:3500. They cover the twelve percent cap, what the statute says about the interest in writing, and the loans it leaves out.

Is it legal to charge 30% interest?

Louisiana's usury statute says the amount of conventional interest cannot exceed twelve percent per annum, so 30% is far above the limit. The article does not apply to a loan made for commercial or business purposes, so check what kind of loan you are making before you set a rate.^[1]

What are the rules for a promissory note?

Under La. Rev. Stat. § 9:3500, interest is either legal or conventional. Three rules matter most for a note:

• Conventional interest cannot exceed twelve percent per annum.
• The interest must be fixed in writing, and testimonial proof of it is not admitted in any case.
• The article does not apply to a loan made for commercial or business purposes.^[1]

What are Usury Laws and Maximum Interest Rates?

Usury laws are state laws that decide whether the interest a note charges is capped, and at what rate. In Louisiana the cap is twelve percent per annum on conventional interest. A person who pays a higher rate may sue to recover it within two years from the time of the payment.^[1]

Other Louisiana Forms
Various other essential Louisiana templates available for download and that can be customized in our simple document maker.

• Louisiana Last Will
• Louisiana Small Estate Affidavit
• Louisiana Bill of Sale
• Louisiana Rental Lease Agreement
• Louisiana Eviction Notice
• Louisiana Power of Attorney
• Louisiana Non-compete Agreement

General information, not legal or tax advice.

Sources

1. La. Rev. Stat. § 9:3500.

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.