A “Loan Promissory Note” is a specific type of promissory note used in lending transactions where one party (the borrower) borrows money from another party (the lender). It serves as a legally binding agreement between the borrower and the lender, outlining the terms and conditions of the loan, including the repayment terms and obligations.
in general, Loan Promissory Notes are essential legal documents that provide clarity and enforce-ability to the loan agreement. They help protect the interests of both parties by clearly defining the terms of the loan, including repayment obligations, interest rates, and any applicable fees or penalties. Additionally, they serve as evidence of the borrower’s promise to repay the loan, which can be used in legal proceedings if disputes arise.