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Texas Promissory Notes

Create a legally compliant Texas 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.

Texas Usury Law and Note Requirements

Max Interest Rate 18%
Rate Description 10-18% depending on loan type
Default Rate 6%
Penalty for Exceeding Usury Limit Triple interest or $2,000 penalty
Statute of Limitations 4 years
Notarization Required Not required (recommended)
Witness Required Not required
Governing Agency Texas District Courts

Texas usury law is governed by Texas District Courts. The maximum allowable interest rate is 18% (10-18% depending on loan type). Penalties for exceeding the usury limit include: Triple interest or $2,000 penalty. The statute of limitations for enforcing a promissory note in Texas is 4 years. Notarization is not required but recommended. Our documents are designed to comply with Texas law and include all required provisions.

Frequently Asked Questions

What is the maximum interest rate for a promissory note in Texas?

Texas caps the maximum interest rate at 18% (10-18% depending on loan type). Exceeding this limit may result in penalties: Triple interest or $2,000 penalty. If no rate is specified, the default legal rate is 6%. Our documents include a usury savings clause for additional protection.

Does a promissory note need to be notarized in Texas?

Notarization is not legally required in Texas, 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 Texas 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, Texas-compliant PDF instantly. Re-download available for 5 days.

What is the usury limit for private loans in Texas?

Texas caps interest at 10% per year for private written contracts under the Texas Finance Code (§302.001), unless both parties agree to a higher rate in writing - in which case the maximum is 18% per year for most personal loans. Charging above the agreed limit or the statutory ceiling is usury. Texas has civil penalties for usury including forfeiture of all interest charged. Licensed lenders operate under separate rate schedules. Lenders have 4 years to sue on a written promissory note.

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