A Texas 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 Texas promissory note template covers each of those details and lets you choose an unsecured or a secured loan. In Texas, the maximum rate of interest is 10 percent a year unless another law provides otherwise.[1.1]
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Texas law. If you notice an error or outdated information, please contact us.
Build Your Document
Answer a few simple questions to make your document in minutes
Save and Print
Save progress and finish on any device, download and print anytime
Sign and Use
Your valid, lawyer-approved document is ready
Texas usury law sets the highest interest a promissory note can charge. Under Section 302.001 of the Tex. Fin. Code, the maximum rate or amount of interest is 10 percent a year except as otherwise provided by law, and a greater rate is usurious unless a law provides otherwise.[1.1]
The maximum rate or amount of interest is 10 percent a year except as otherwise provided by law.
All contracts for usurious interest are contrary to public policy and subject to the penalty prescribed by Chapter 305 of the Texas Finance Code. To find the rate of a loan, all interest contracted for at any time is added up and spread over the stated term of the loan, using the actuarial method.[1.1]
| Document Name | Texas Promissory Note Form |
| Other Name | TX Promissory Note |
| Max. Rate | 10 percent a year, unless another law provides otherwise[1.1] |
| Relevant Laws | Texas Statutes, Finance Code, Section 302.001 |
| Avg. Time to Fill Out | 10 minutes |
| # of Fillable Fields | 28 |
| Available Formats | Adobe PDF |
Popular Local Promissory Note Forms
A promissory note (sometimes referred to as just note) is considered a common monetary document used regularly by both individuals and companies around all states as a funding source and a substitute for banking institutions. Learn about the most common states requested by our users in terms of promissory note templates.
Besides the 10 percent a year cap, Chapter 302 of the Tex. Fin. Code sets rules for several kinds of loans and charges. They cover a loan with no agreed interest, delinquency and late charges, prepayment, and loans secured by real property.
The 10 percent a year cap applies unless another law provides otherwise. If you plan to charge a higher rate, ask an attorney first.[1.1]
The FormsPal Texas promissory note has 28 fillable fields. Enter the date, the parties, the amount and the interest rate on page 1, choose the payment terms, choose unsecured or secured on page 2, and sign on page 3. 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 Texas 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, prepayment, governing law and assignment. Read them with the other party before you sign.
Texas caps the interest on a promissory note at 10 percent a year unless another law provides otherwise. A greater rate is usurious, and contracts for usurious interest are contrary to public policy.[1.1]
In Texas, the maximum rate or amount of interest is 10 percent a year except as otherwise provided by law.[1.1]
Up to 10 percent a year, unless another law provides otherwise. A greater rate is usurious.[1.1]
A greater rate of interest than 10 percent a year is usurious unless otherwise provided by law.[1.1]
A 30 percent annual rate is above the 10 percent a year maximum, so it is usurious unless a law provides otherwise.[1.1]
Usury laws limit the interest a lender may charge. In Texas, that limit is 10 percent a year unless another law provides otherwise.[1.1]
General information, not legal or tax advice.
