Promissory Deed Template for India

A Promissory Deed is a crucial financial instrument used in India when one party needs to formally document a promise to pay a specific sum of money to another party. This document type is governed by the Negotiable Instruments Act, 1881, and must comply with Indian stamp duty requirements. It is commonly used in business loans, personal loans, real estate transactions, and various commercial arrangements where deferred payment is involved. The Promissory Deed serves as evidence of debt and can be used for legal enforcement if the promisor defaults on payment. It must contain specific elements to be valid under Indian law, including clear identification of parties, the promised amount, payment terms, and proper execution. The document can be either simple or complex, depending on whether it includes additional elements such as security provisions, guarantors, or special payment arrangements.

1. Title and Date: Clearly states that this is a Promissory Deed and the date of execution

2. Parties: Identifies the maker (promisor) and the payee (promisee) with their full legal names, addresses, and any relevant identification details

3. Promise to Pay: Contains the unconditional promise to pay, specifying the exact amount in both figures and words

4. Payment Terms: Details of when and how the payment will be made, including due date(s) and payment method

5. Interest Rate: Specifies the applicable interest rate, if any, and how it will be calculated

6. Place of Payment: Specifies where the payment is to be made

7. Execution: Space for signatures of the maker, witnesses, and any required attestation