Document background
The Loan Promissory Note is a fundamental debt instrument used in the Netherlands to document and formalize lending arrangements. This document type is particularly important when parties need to create a clear, legally binding record of a loan transaction. The promissory note includes essential information such as the loan amount, interest rate, payment terms, and the borrower's unconditional promise to repay. Under Dutch law, a Loan Promissory Note (schuldbekentenis) serves as strong evidence of debt and can facilitate easier enforcement of the lender's rights. It is commonly used in various contexts, from business loans to personal lending, and can be either secured or unsecured. The document must comply with Dutch Civil Code requirements and may need to address specific regulatory requirements depending on the nature of the parties involved and the purpose of the loan.
