Build a legally compliant Unsecured Promissory Note for Indiana that contains all required terms under Indiana promissory note law. Fill in your loan details and download your completed, ready-to-sign Unsecured Promissory Note as a professional PDF.
Indiana law governs promissory notes with specific usury limits and enforcement rules that shields both creditor and borrowing party. The usury limit in Indiana is 21% under UCCC. Lenders have 10 years to file suit to collect on a promissory note in Indiana. Indiana law requires 3 specific elements in a valid promissory note.
Indiana Promissory Note Requirements
Max Interest Rate 21%
Rate Details 21% under UCCC
Usury Penalty UCCC remedies only
Statute of Limitations 10 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency Indiana Circuit Courts
Required Elements Written agreement signed by borrower; Clear repayment terms; Interest rate disclosure
What to Include in a Indiana Unsecured Promissory Note
Every Unsecured Promissory Note in Indiana should include the following important provisions: the full legal names and addresses of both the lender and obligor, the principal loan amount, the interest rate (which must not exceed 21% under UCCC under Indiana law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause.
Indiana requires the following elements in a valid promissory note: written agreement signed by borrower, clear repayment terms, interest rate disclosure.
How to Complete a Indiana Unsecured Promissory Note
To complete a Unsecured Promissory Note in Indiana, start by gathering the necessary information: the full legal names and addresses of both parties, the loan amount, the agreed-upon interest rate (must be at or below 21% under UCCC in Indiana), the repayment terms, and any collateral details if applicable.
Our platform walks you through each section with a guided form tailored to Indiana requirements. Once you have filled in all details, you can preview the document, choose from five professional document styles, and download your completed Unsecured Promissory Note as a PDF.
Frequently Asked Questions
What is the maximum interest rate for a promissory note in Indiana?
Indiana caps interest at 21% under UCCC. Charging above the legal limit is usury - in Indiana, the penalty is: uccc remedies only. Always confirm the current rate with an attorney, as usury laws can change.
Do I need a notary for a promissory note in Indiana?
Notarization is not required in Indiana for a promissory note to be legally valid. Notarizing it anyway is strongly recommended - it deters forgery claims, simplifies court enforcement, and makes the note self-authenticating as evidence. Having 1 witness is also recommended.
What happens if a borrower defaults on a promissory note in Indiana?
Upon default, the lender may demand immediate repayment of the full outstanding balance, charge any default interest rate specified in the note, and file suit in Indiana court. Lenders have 10 years from the date of default to file a lawsuit under Indiana's statute of limitations for written contracts.
Is an unsecured promissory note enforceable in Indiana?
Yes. An unsecured promissory note is a legally enforceable contract in Indiana even without collateral. If the borrower defaults, the lender can sue in Indiana court and obtain a judgment, which can be used to garnish wages or bank accounts. Lenders have 10 years to file suit.
Is a promissory note the same as an IOU?
No. An IOU is an informal acknowledgment of a debt - it typically lacks repayment terms, interest rates, and default provisions. A promissory note is a formal legal contract with specific terms including the loan amount, interest rate, repayment schedule, and consequences of default. Promissory notes are far more enforceable in court than informal IOUs.
Is a promissory note legally binding in Indiana?
Yes. A properly executed promissory note is an enforceable contract in Indiana. It must identify both parties, state the loan amount and repayment terms, and be signed by the borrower. Lenders have 10 years to pursue legal action to collect on a defaulted note.
What is Indiana's interest rate limit for private promissory notes?
Indiana caps interest for consumer loans at 21% per year (Ind. Code §24-4.5-3-508). For commercial loans between private parties, Indiana generally allows parties to contract for any rate agreed to in writing, with courts applying a reasonableness standard for extraordinarily high rates. Indiana's 6-year statute of limitations applies to written promissory notes. Lenders should clearly specify the interest rate in the note - if no rate is stated, Indiana's default rate of 8% applies.
