Build a legally legally sound Unsecured Promissory Note for South Carolina that includes all required terms under South Carolina promissory note law. Fill in your loan details and download your completed, ready-to-sign Unsecured Promissory Note as a professional PDF.
South Carolina law governs promissory notes with specific usury limits and enforcement rules that secures both lender and obligor. The usury limit in South Carolina is 8.75% or Federal Reserve rate plus 4%. Lenders have 3 years to file suit to collect on a promissory note in South Carolina. South Carolina law requires 3 specific elements in a valid promissory note.
South Carolina Promissory Note Requirements
Max Interest Rate 8.75%
Rate Details 8.75% or Federal Reserve rate plus 4%
Usury Penalty Forfeiture of all interest
Statute of Limitations 3 years
Notarization Recommended
Witnesses Recommended (1)
Governing Agency South Carolina Circuit Courts
Required Elements Written agreement signed by borrower; Clear repayment terms; Interest rate disclosure
What to Include in a South Carolina Unsecured Promissory Note
Every Unsecured Promissory Note in South Carolina should include the following critical provisions: the full legal names and addresses of both the creditor and borrowing party, the principal loan amount, the interest rate (which must not exceed 8.75% or Federal Reserve rate plus 4% under South Carolina law), the repayment schedule and due dates, any late payment penalties, the consequences of default, and the governing law clause.
South Carolina requires the following elements in a valid promissory note: written agreement signed by borrower, clear repayment terms, interest rate disclosure.
How to Complete a South Carolina Unsecured Promissory Note
To complete a Unsecured 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 (must be at or below 8.75% or Federal Reserve rate plus 4% in South Carolina), 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 Unsecured Promissory Note as a PDF.
Frequently Asked Questions
What is the maximum interest rate for a promissory note in South Carolina?
South Carolina caps interest at 8.75% or Federal Reserve rate plus 4%. Charging above the legal limit is usury - in South Carolina, the penalty is: forfeiture of all interest. Always confirm the current rate with an attorney, as usury laws can change.
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. Lenders have 3 years from the date of default to file a lawsuit under South Carolina's statute of limitations for written contracts.
Is an unsecured promissory note enforceable in South Carolina?
Yes. An unsecured promissory note is a legally enforceable contract in South Carolina even without collateral. If the borrower defaults, the lender can sue in South Carolina court and obtain a judgment, which can be used to garnish wages or bank accounts. Lenders have 3 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 South Carolina?
Yes. A properly executed promissory note is an enforceable contract in South Carolina. It must identify both parties, state the loan amount and repayment terms, and be signed by the borrower. Lenders have 3 years to pursue legal action to collect on a defaulted note.
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. South Carolina's 3-year statute of limitations applies to written contracts, one of the shorter periods in the country.
