Basic Loan Note Template
This Basic Loan Note is a simple, legally binding financing arrangement whereby a borrower issues a loan note to a noteholder (or noteholders) to evidence that money has been borrowed. The terms and conditions are succinct and minimal, but the key repayment and interest provisions are included.
It can act as an alternative to a promissory note. As a loan note is a deed poll, it is only required to be executed by the company issuing the note.
What does Basic Loan Note Template do?
It provides a short-form loan note for raising finance, recording the borrowing and the key interest and repayment terms in a deed poll format.
When should you use Basic Loan Note Template?
Use this version if you want a loan note with fewer provisions than the long form template, but you still need interest and repayment terms documented.
Loan notes can be used to raise finance for SME businesses and for clubs, societies or associations. This can be attractive where:
- Several loan notes of small denominations will be issued
- Money is being raised on a short-term basis
- A club, society or association with a large membership base wants to raise finance from members investing small amounts each
Other statutory note
The execution provisions of this template are compliant and consistent with the requirements of the Land Registry for prescribed form deeds introduced from 20 September 2019.
Choose the right version
If you require a loan note with more detailed provisions, use:
What else you may need
Basic Loan Note Template is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.