Minnesota Promissory Note Templates

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A Minnesota promissory note isn’t uncommon. Think of it as a written formal “promise” between two parties. This includes the borrower, who borrows money, and the lender, who lends a loaned amount of money to the former.

In this written agreement, the borrower agrees to pay the overall balance in a specific timeframe, including the accrued interest.

These promissory notes are beneficial for both the lender and the borrower. They clearly state expectations while emphasizing a repayment plan.

In the state of Minnesota, if an interest rate isn’t listed on the promissory note, there’s a usury rate (or legal interest rate) of 6%, according to the state’s legislature. However, the usury rate with promissory notes is 8% unless the loan is more than $100,000.

There are two types of Minnesota promissory notes: secured or unsecured.

Minnesota Secured Promissory Note

A secured promissory note means the borrower promises to give the lender collateral if the borrower shirks their agreement. The collateral — also called security — is usually in the form of assets.

The promissory note template for Minnesota is easy to follow. When you write a secured promissory note, you’ll include:

  • Opening information, like the date, the name and address of both the borrower and lender, the total of the loan and the interest rate
  • Payments
  • The due date
  • Interest due in case the borrower evades the note or loan
  • Late fees
  • Acceleration, or how long the borrower has to fix a default on the loan
  • Security
  • Signatures

Minnesota Unsecured Promissory Note

A Minnesota promissory note that’s unsecured doesn’t include any type of security or collateral. Because of this, the lender might be at a higher risk of losing the loaned amount of money.

With unsecured promissory notes, lenders should make sure the borrower in question has a history of good credit. People who choose to go with unsecured promissory note Minnesota forms are usually lifelong friends or family members. You can use a free Minnesota promissory

note form to make up an agreement at your convenience.


Secured Minnesota promissory notes have to have information on the collateral or security that could be collected if the borrower shirks the loan. Even though it’s a secured promissory note, you’ll have to include this just in case. If you don’t include that information, a court can consider the note unsecured.

A payment allocation is a clause that shows how the payments will be divided between the amount charged for interest and the principal balance.

By including attorney fees and expenses in a clause, this protects both parties in the event of legal disagreement. The term will highlight how the fees and costs will be handled with regards to both the lender and the borrower.

No. There’s no law that a promissory note in Minnesota has to be notarized. It just has to be dated and signed by all parties.