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South Carolina Demand Promissory Note

Create South Carolina Demand Promissory Note - $7.99

Not a blank template - your details are filled in, formatted to South Carolina law, and ready to sign.

Generate a legally valid Demand Promissory Note for South Carolina that contains all required terms under South Carolina promissory note law. Fill in your loan details and download your completed, ready-to-sign Demand Promissory Note as a professional PDF.

South Carolina law governs promissory notes with specific usury limits and enforcement rules that defends both lending party and debtor. South Carolina does not impose a general statutory cap on interest rates for private loans. For a demand note in South Carolina, the 6-year limitation period runs from the date demand for payment is made. South Carolina law requires 3 specific elements in a valid promissory note.

South Carolina Promissory Note Requirements

Max Interest Rate No statutory cap
Rate Details No general usury cap on a private person-to-person written note; lenders regularly making consumer loans are capped at 12% unless licensed. 8.75% legal rate absent a written agreement.
Usury Penalty No usury forfeiture applies to a private loan; for consumer credit covered by the Consumer Protection Code, the borrower may recover the excess charge plus a penalty set by the court.
Statute of Limitations 6 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency South Carolina Circuit Courts
Required Elements Written agreement signed by borrower; Demand notice period; Interest rate disclosure

South Carolina Demand Promissory Note Signing Checklist

Print this or save it as a PDF and use it at the signing. Review every item before any party puts pen to paper.

Before you sign

  • Both the lender and borrower read the full note before signing.
  • Confirm the principal amount, interest rate, and repayment terms match what was agreed.
  • Confirm any late fee amount and grace period are correct.
  • The lender keeps the original signed note in a safe place.
  • Each party keeps a signed copy for their own records.

South Carolina rules to know

  • South Carolina does not impose a general statutory cap on interest rates for private written loans. Any agreed rate should still be reasonable.
  • Notarization is not required in South Carolina but is strongly recommended. A notarized note is self-authenticating in court and harder to dispute.
  • 1 witness is recommended in South Carolina even though not legally required.
  • In South Carolina, the lender has 6 years from the date demand is made to file suit to collect.

In the note itself

  • Borrower's full legal name and current address.
  • Lender's full legal name and current address.
  • Principal loan amount written out in both numbers and words.
  • Annual interest rate (expressed as a percentage).
  • A statement that repayment is due upon the lender's written demand.
  • Late fee amount and grace period, if any.
  • Signatures of both parties (and witnesses if required).
  • Minimum notice period before repayment must be made (e.g., 30 days), if the parties agreed to one.

This checklist is a reference aid only. Consult an attorney for advice specific to your situation. Confirm current South Carolina lending rules before signing.

What to Include in a South Carolina Demand Promissory Note

Every Demand Promissory Note in South Carolina should include the following essential provisions: the full legal names and addresses of both the lender and obligor, the principal loan amount, the interest rate (which must not exceed the agreed-upon rate under South Carolina law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause. A demand note should clearly state that repayment is due upon the lender's written demand, with any minimum notice period the parties have agreed to before demand is made.

South Carolina requires the following elements in a valid promissory note: written agreement signed by borrower, demand notice period, interest rate disclosure.

How to Complete a South Carolina Demand Promissory Note

To complete a Demand Promissory Note in South Carolina, start by gathering the necessary information: the full legal names and addresses of both parties, the loan amount, the agreed-upon interest rate, the repayment terms, and any collateral details if applicable.

Our platform walks you through each section with a guided form tailored to South Carolina requirements. Once you have filled in all details, you can preview the document, choose from five professional document styles, and download your completed Demand Promissory Note as a PDF.

Frequently Asked Questions

What is the maximum interest rate for a promissory note in South Carolina?
South Carolina does not impose a general statutory cap on interest rates for private written contracts. Parties have flexibility to agree on a rate, but courts may still void terms they find unconscionable or predatory.
Do I need a notary for a promissory note in South Carolina?
Notarization is not required in South Carolina 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 South Carolina?
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 South Carolina court. For a demand note, the 6-year limitation period runs from the date demand for payment is made.
How much notice must a lender give before demanding repayment in South Carolina?
A demand promissory note is due whenever the lender demands repayment - there is no fixed maturity date. The amount of notice required depends on what is written in the note itself; if no notice period is specified, repayment may be demanded immediately. Many demand notes include a minimum notice period (e.g., 30 days) as a courtesy term. In South Carolina, lenders have 6 years from when demand was first due to file suit.
What is the difference between a demand note and an installment note?
A demand promissory note has no fixed repayment schedule - the lender can call the loan at any time. An installment note has a set schedule of regular payments over a defined period. Demand notes are common for informal loans between family or friends, while installment notes are more common for larger, structured loans. Demand notes give lenders more flexibility but give borrowers less certainty.
What must be included in a South Carolina Demand Promissory Note?
A valid Demand Promissory Note in South Carolina must include: Written agreement signed by borrower; Demand notice period; Interest rate disclosure. Our platform automatically includes all required elements formatted to South Carolina standards.
What usury laws apply to South Carolina promissory notes?
South Carolina caps interest at 8.75% per year (the legal rate) for contracts that don't specify a rate (S.C. Code §34-31-20). Parties may agree to higher rates in writing - for most commercial transactions, South Carolina courts enforce the contracted rate. Consumer loans are subject to the South Carolina Consumer Protection Code with specific caps. For a negotiable promissory note, South Carolina applies the Uniform Commercial Code six-year period (S.C. Code 36-3-118), longer than its general three-year contract period.

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