Document background
A Simple Loan Promissory Note is commonly used in Singapore when documenting straightforward lending arrangements between parties. This document is particularly useful for both commercial and personal loans where a formal but uncomplicated structure is needed. The promissory note, governed by Singapore law, serves as evidence of debt and includes key information such as loan amount, interest rate, payment terms, and maturity date. It provides a clear record of the borrower's promise to repay the loan and can be used for enforcement purposes if needed. The document must comply with Singapore's lending regulations, including the Civil Law Act and Moneylenders Act, particularly regarding interest rate restrictions and enforcement provisions.
