A Maryland promissory note is a written promise to repay borrowed money. It names the lender, the borrower, the amount, the interest rate and the payment terms. This free Maryland promissory note template covers each of those details and lets you choose an unsecured or a secured loan. Under Maryland usury law, the base limit is 8 percent simple interest a year when a signed written agreement states the rate. Some loans carry a higher limit.[1]
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Maryland law. If you notice an error or outdated information, please contact us.
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Maryland usury law limits the interest a lender may charge on a loan. Under Section 12-103 of the Md. Code, Com. Law, a lender may charge simple interest of up to 8 percent per year on the unpaid principal balance. This applies when a written agreement signed by the borrower states the rate.[1]
A lender may charge interest at an effective rate of simple interest not in excess of 8 percent per year on the unpaid principal balance of a loan if there is a written agreement signed by the borrower which sets forth the stated rate of interest charged by the lender.
In practice, the interest rate belongs on the note itself, in writing, above the borrower's signature. The FormsPal template has a line for it on page 1.
Section 12-102 of the Commercial Law Article of the Maryland Code sets the general ceiling. Except as otherwise provided by law, a person may not charge interest above an effective rate of simple interest of 6 percent per year on the unpaid principal balance of a loan.[2]
| Document Name | Maryland Promissory Note Form |
| Other Name | MD Promissory Note |
| Max. Rate | 8% per year with a written agreement signed by the borrower, higher for some loans[1] |
| Relevant Laws | Md. Code, Com. Law § 12-103 |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
A promissory note (sometimes called loan agreement) is a handy money instrument used by many individuals and companies through all states as a funds source and a substitute for banking institutions. Discover more about the most popular US states requested by our users when it comes to promissory notes.
The 8 percent rule is the first of several rules in Section 12-103. The statute sets other limits for particular kinds of loans, and it lets a lender charge any rate on some loans. The list below shows each limit in plain words.[1]
Before you set a rate above 8 percent, check which of these rules fits your loan. If you are unsure, ask an attorney first.
Section 12-103 attaches conditions to its higher interest rates. Two of them concern how the loan is repaid, which are prepayment and balloon payments. The statute also defines two terms that appear in those conditions, residential real property and refinancing.[1]
The FormsPal template says the borrower may prepay the note at any time, in whole or in part, without a penalty or premium. That term appears on page 2 and needs no entry from you.
A Maryland promissory note is either secured or unsecured. A secured note names collateral, which is property the borrower pledges to back the loan. An unsecured note names no collateral and relies on the borrower's promise to repay. The FormsPal template has a box for each choice.
A promissory note usually lists the details below. The FormsPal template has a place for each of them.
Each side usually keeps a signed copy, so make at least two copies. For a secured note, many lenders ask for collateral that is worth at least as much as the loan.
The FormsPal Maryland promissory note has 28 fillable fields across three pages. Page 1 takes the date, the parties, the amount, the interest rate and the payment terms. Page 2 asks you to choose unsecured or secured. Page 3 holds the signatures. Download the PDF above, or build it online with our form builder. You can then fill in and sign the PDF on any device.
The screenshots under each step show the FormsPal Maryland 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.
Page 2 also holds fixed terms with nothing to fill in, such as the late fee, the right to prepay without penalty, Maryland governing law and assignment by the lender. Read them with the other party before you sign.
Section 12-103 of the Md. Code, Com. Law sets how much interest a lender may charge on a promissory note. These answers cover the questions people ask most about interest rates and limits in Maryland.[1]
The base rule is up to 8 percent per year on the unpaid principal balance, with a signed written agreement that states the rate. Other loans carry limits of 18 or 24 percent. A rate of 600 percent is above all of those limits, though the statute lets a lender charge any rate on some loans, such as certain commercial loans.[1]
A rate of 30 percent is higher than the 8, 18 and 24 percent limits described on this page. The statute lets a lender charge any rate on some loans, such as a commercial loan of more than $15,000 that is not secured by residential real property.[1]
The limit depends on the loan.
Other Promissory Note Forms by State
General information, not legal or tax advice.
