California Promissory Notes
Create a legally compliant California promissory note that complies with state usury limits and includes all required provisions. Choose the note type that fits your lending situation, fill out the guided form, and download your professional PDF for $7.99.
Browse by document type across all states →
Secured Promissory Note
For loans backed by collateral such as a vehicle, property, or equipment. The lender can seize the collateral if the borrower defaults.
Complies with California usury limits (max 10%). Includes collateral description and default remedies.
Create Secured Promissory NoteUnsecured Promissory Note
For loans based solely on the borrower's promise to pay, with no collateral pledged. Common for personal and family loans.
California statute of limitations: 6 years. Max interest rate: 10%.
Create Unsecured Promissory NoteInstallment Promissory Note
For loans repaid in fixed periodic payments over a set term. Includes a detailed payment schedule with amounts and due dates.
Includes amortization-ready payment terms compliant with California usury law (10% max rate).
Create Installment Promissory NoteDemand Promissory Note
Payable in full when the lender demands repayment. No fixed schedule or maturity date. Common for informal arrangements.
Payable on demand under California law. Includes usury savings clause and default provisions.
Create Demand Promissory NoteCalifornia Usury Law and Note Requirements
Verified against official California usury statutes and California Superior Courts guidance. Last reviewed May 2026. How we verify our legal data.
A California promissory note is subject to the state's constitutional usury law, which caps interest on most personal loans at 10 percent per year when the rate is set by written contract. If no rate is stated, California's default legal rate is 7 percent. Loans arranged or made by licensed lenders, and many business loans, fall outside the cap.
Charging more than the limit is serious in California: a usurious note can expose the lender to a treble-interest penalty, and willful loan-sharking is punishable as a felony. The statute of limitations to sue on the note itself is six years under the Uniform Commercial Code, though a usury claim must be brought within one year. Our documents include a usury savings clause and record the rate, schedule, and signatures that make a note enforceable.
Frequently Asked Questions
What is the maximum interest rate for a promissory note in California?
California caps the maximum interest rate at 10% (10% for personal loans by written contract). Exceeding this limit may result in penalties: Treble the interest paid may be recovered within one year (Civ. Code 1916-3(a)); willful loan-sharking is punishable as a felony (1916-3(b)). If no rate is specified, the default legal rate is 7%. Our documents include a usury savings clause for additional protection.
Does a promissory note need to be notarized in California?
Notarization is not legally required in California, but it is strongly recommended. A notarized note is easier to enforce in court and helps verify the identities of all parties. While not required, having 1 witness is recommended.
How much does a California promissory note cost?
Each promissory note costs $7.99. Choose your note type, fill in your details through our guided form, and download your completed, California-compliant PDF instantly. Re-download available for 5 days.
What is California's usury limit for private promissory notes?
California's Constitution (Article XV) caps interest at 10% per year for non-exempt lenders making loans to individuals for personal, family, or household purposes. Loans for business, commercial, or investment purposes have a higher cap (the higher of 10% or 5% above the Federal Reserve discount rate). Banks, credit unions, licensed lenders, and seller-financed real estate transactions are exempt. Loans that violate California's usury law are void as to the interest portion.
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