No Interest Promissory Note Template for Netherlands

The No Interest Promissory Note is commonly used in the Netherlands when parties wish to formalize a loan arrangement without charging interest. This document is particularly useful in family lending, business relationships, or situations where charging interest may be undesirable or prohibited. Under Dutch law, the document must comply with the requirements of the Burgerlijk Wetboek (Dutch Civil Code) and clearly state the absence of interest charges. It typically includes the loan amount, payment terms, parties' details, and any security arrangements. The document serves both as evidence of the debt and as a legally enforceable instrument, providing clarity and protection for both the lender and borrower while maintaining the interest-free nature of the arrangement.

1. Parties: Identification of the Lender (Promisee) and Borrower (Promisor) with full legal names and addresses

2. Background: Brief context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the document

4. Promise to Pay: Clear statement of the principal amount and explicit mention that no interest will be charged

5. Payment Terms: Specification of payment date(s), method of payment, and currency

6. No Interest Declaration: Explicit statement that the loan is interest-free and that this is intended by both parties

7. Prepayment: Terms allowing early repayment without penalty

8. Events of Default: Circumstances that trigger immediate repayment obligation

9. Notices: How and where formal communications between parties should be sent

10. Governing Law: Specification that Dutch law governs the agreement

11. Signatures: Execution block for both parties with date