A Loan Promissory Note

If you take out a loan to go to college, chances are high that you will have to sign a loan promissory note. This is a form that you will sign that says you understand the terms of the agreement and you are willing to take the loan out anyway. You are agreeing to pay back the loan on a certain schedule. You are promising to the lending institution that you will not default on such loans. Loan promissory notes are also necessary for mortgages and bank loans. It gives the lending institution some proof of the customer’s promise to make payment. If anything goes wrong, the lender can use this paperwork.

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