A South Carolina promissory note is a written promise to repay a loan, with the amount, rate and payment dates in writing. Under S.C. Code Ann. § 37-10-106, interest is limited to six percent per annum unless a written contract expressly sets a different rate.[1.3] Use the free FormsPal template below to build the note online or download it as a PDF.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current South Carolina law. If you notice an error or outdated information, please contact us.
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The FormsPal template, like our basic promissory note template, sets out the terms that govern the loan:
South Carolina limits interest on a loan to six percent per annum unless a written contract expressly provides a different rate. The limit is in S.C. Code Ann. § 37-10-106, which also covers the legal rate of interest and life insurance policy loans.[1.3] The statute words the limit this way.
No greater interest than six percent per annum shall be charged, taken, agreed upon or allowed upon any contract arising in this state for the hiring, lending, or use of money or other commodity, either by way of straight interest, discount or otherwise, except upon written contracts wherein, by express agreement, any rate of interest may be charged, except as otherwise provided in this title or by law.
In plain words, six percent per annum is the ceiling unless the parties agree to another rate in a written contract. Other provisions of the S.C. Code or other law can still limit the rate.
Chapter 10 of Title 37 of the S.C. Code sets these related rules.
Breaking the rules in this chapter can cost a creditor money. The debtor can sue to recover actual damages. The debtor can also recover a penalty set by the court of at least one thousand five hundred dollars ($1,500) and at most seven thousand five hundred dollars ($7,500). Neither claim can be brought as a class action.[1.2]
| Document Name | South Carolina Promissory Note Form |
| Other Name | SC Promissory Note |
| Max. Rate | Six percent per annum unless a written contract expressly sets another rate[1.3] |
| Relevant Laws | S.C. Code Ann. § 37-10-106 |
| 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 loan note) is considered a simple lending document used regularly by both individuals and businesses through all states as a funding source and a substitute for loan providers. Discover more about the most popular US states searched by our users with regards to promissory notes.
The South Carolina promissory note template is a three-page form with 28 fillable fields, and you complete it in six parts. Work through the parts in order, check the boxes that match your loan and leave the other choices blank. You can fill in the downloaded PDF with our online PDF editor.
The screenshots under each step show the FormsPal South Carolina 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.
The note already prints a late fee of five percent on any delinquent amount. It also prints the borrower's right to prepay without penalty and a line that South Carolina law governs the note. You do not fill in those terms.
A promissory note works best when both sides settle the loan terms before anyone signs. Decide the amount, the interest rate, how often payments are due and whether the loan is backed by collateral. The FormsPal template for South Carolina asks for each of these choices, as the steps above show.
The note uses a few words that are worth knowing before you start. Each one is defined on the form itself.
With a fixed payment, the note states one dollar amount for every payment. With an amortization schedule, the loan is spread over a set number of years, and Exhibit A lists the amount of each payment. A fixed amount suits a short and simple loan in South Carolina, while a schedule suits a longer loan repaid in installments.
| What backs the loan | Unsecured: the Borrower's promise alone. Secured: the promise plus the Collateral named on the form. |
| Box to check | Unsecured: the box that says the note is unsecured. Secured: the secured box, with the assets listed on the lines below it. |
| Extra terms printed on the form | Unsecured: none. Secured: Security Documents, insurance on the Collateral and no sale of the Collateral until the note is repaid. |
On a secured note, the form has the Borrower sign the Security Documents the Lender reasonably asks for. The Lender's security interest in the Collateral ends once the principal and all other sums are paid in full. Both choices are set by the box you check on page 2 of the form.
If the loan is larger or more complex, a full loan agreement may suit the deal better than a single note. Either document records what the two sides agreed to.
FormsPal also offers a family loan agreement, a car promissory note and a short IOU for smaller debts, so you can match the document to the loan.
Once the Borrower and the Lender have both signed, the note is ready to use. Good record keeping protects both South Carolina parties for the life of the loan. Keep the paperwork in a safe place and review it whenever a payment is made or a question comes up.
These steps are common practice and are not a South Carolina rule. To fill in the PDF without printing it, use our online PDF filler.
This answer summarizes the interest rules in S.C. Code Ann. § 37-10-106 that apply to a loan on a promissory note. The sections above give the details, including the prepayment rule and the penalty a court can set for breaking the chapter's rules.[1.3]
The rules this page covers for a South Carolina promissory note are about interest. Three apply under S.C. Code Ann. § 37-10-106.
General information, not legal or tax advice.
This guide relies on the South Carolina statute listed below. Each bracketed number in the text above points to the matching entry in this list, so you can check the wording of the law yourself.
