For a ready-to-fill-in promissory note for a loan with a balloon payment, download Nolo's Promissory Note for Personal Loan (Installment Payments With Balloon Payment).

Securing the Loan with Property

In a secured loan, the borrower pledges property (such as a car, computer, or house) as collateral to guarantee payment. If the borrower doesn't pay, the lender gets the property.

Most personal loans are unsecured. However, if you do want security for your personal loan, consider what property will be the security and what documents you need.

• Tangible personal property. This is physical personal property such as a car, jewelry, or computer equipment. Complete a security agreement along with the promissory note. You can obtain a sample security agreement from legal bookstores or stationary stores. Also, Nolo's Quicken WillMaker Plus contains standard security agreements.
• Real estate. If you want to secure the loan with real estate, you need a mortgage or deed of trust. Consult a real estate lawyer to assist you.
• Intangible personal property. This includes assets such as copyrights, trademarks, patents, and ownership rights in a business. If you want to secure your loan with intangible personal property, consult a lawyer.

Start a Promissory Note Now

To start creating your promissory note, download one of Nolo's eforms (referenced above), or find them all in Nolo's award-winning Quicken® WillMaker Plus. In addition to promissory note forms, this software contains many legal forms, such as a will and living trust, that you need to protect your family and your assets, and to save on legal fees.