Consent and Undertakings•VERSION 1.0

Demand Promissory Note for Monetary Loan

Jurisdiction:India (General)

Negotiable instrument executed under Section 4 of the Negotiable Instruments Act 1881 promising unconditional repayment of loan on demand with interest.

Legal NoticeGeneral template, legal applicability not verified.

Particulars (9 Fields)

01.Note Date*

विवरण दर्ज करें

💡 Enter accurate note date

02.Execution City / Place*

न्यायालय क्षेत्र / शहर

💡 City/District whose courts hold jurisdiction

03.Borrower (Maker) Full Name*

विवरण दर्ज करें

💡 e.g. Vikram Singhania

04.Borrower Residential Address*

सम्पत्ति / परिसर का पूरा पता

💡 Complete municipal address with PIN code

05.Lender (Payee) Full Name*

विवरण दर्ज करें

💡 e.g. Suresh Agarwal

06.Lender Address*

सम्पत्ति / परिसर का पूरा पता

💡 Complete municipal address with PIN code

07.Principal Loan Amount (in Rs.)*

ऋण राशि (₹)

💡 Total principal loan amount sanctioned

08.Annual Interest Rate (%)*

ब्याज दर (% प्रति वर्ष)

💡 Agreed interest rate percentage per annum

09.Purpose of Loan*

ऋण राशि (₹)

💡 Total principal loan amount sanctioned

Contract Clauses & Optional Terms

Drag Handle to Reorder

Reorder terms via vertical drag handles or toggle statutory optional covenants. Clauses will automatically re-index sequentially in the agreement sheet.

Tenure & Term of Lease
The term of this lease/tenancy shall be for a fixed duration of {{dura...
Mandatory
Monthly Rent & Due Date
The Second Party covenants to remit a monthly rent of Rs. {{monthly_re...
Mandatory
Refundable Security Deposit
The Second Party has deposited an interest-free refundable security su...
Mandatory
Permitted Use of Premises
The demised premises shall be utilized exclusively for lawful resident...
Mandatory
Statutory Arbitration (Act 1996)
Any dispute arising hereunder shall be referred to a sole arbitrator a...
Delayed Rent Interest (18% p.a.)
Default in monthly rent remittance beyond the grace period shall attra...
Sub-Lease & Assignment Prohibition
The Second Party is strictly prohibited from sub-letting, parting with...
Pet & Society Bylaw Compliance
Domestic pets are permitted subject to strict adherence to resident we...
Force Majeure Calamity Suspension
Neither party shall be held liable for statutory defaults caused by fl...

Party 1 Signature / ExecutionDigital Canvas (HTML5)

Digital Signature Pad

Sign inside this box (Touch or Mouse)

Paper:

REF: PROMISSORY-NOTE-DEMAND

DEMAND PROMISSORY NOTE (Executed under Section 4 of the Negotiable Instruments Act, 1881) Principal Sum: Rs. [Principal Loan Amount (in Rs.)] Place of Execution: [Execution City / Place], India Date: [Note Date] ON DEMAND, I, [Borrower (Maker) Full Name], residing at: [Borrower Residential Address] (hereinafter referred to as the "Maker / Borrower"), PROMISE TO PAY to [Lender (Payee) Full Name], residing at: [Lender Address] (hereinafter referred to as the "Payee / Lender"), or order, the principal sum of Rs. [Principal Loan Amount (in Rs.)] (Rupees [Principal Loan Amount (in Rs.)] only), value received in cash / banking transfer towards [Purpose of Loan], together with agreed interest thereon at the rate of [Annual Interest Rate (%)] from the date hereof until complete repayment and discharge. [AFFIX REVENUE STAMP HERE] ____________________________________ (Signature of Maker across Revenue Stamp) Name: [Borrower (Maker) Full Name] Address: [Borrower Residential Address] WITNESSES: 1. Signature: ______________________ Name: Address: 2. Signature: ______________________ Name: Address:

SCHEDULE OF TERMS, COVENANTS & CONDITIONS(6 ACTIVE CLAUSES)

1. TENURE & TERM OF LEASE: The term of this lease/tenancy shall be for a fixed duration of {{duration_months}} months commencing on {{commencement_date}} and terminating on {{expiry_date}} unless renewed by mutual consent.

2. MONTHLY RENT & DUE DATE: The Second Party covenants to remit a monthly rent of Rs. {{monthly_rent}} payable in advance on or before the {{rent_due_day}} day of each calendar month.

3. REFUNDABLE SECURITY DEPOSIT: The Second Party has deposited an interest-free refundable security sum of Rs. {{security_deposit}} with the First Party, returnable within 7 banking days of vacant handover.

4. PERMITTED USE OF PREMISES: The demised premises shall be utilized exclusively for lawful residential dwelling purposes and shall not be converted into commercial or industrial use.

5. STATUTORY ARBITRATION (ACT 1996): Any dispute arising hereunder shall be referred to a sole arbitrator appointed mutually under the Arbitration and Conciliation Act, 1996, with seat of arbitration in the execution city.

6. SUB-LEASE & ASSIGNMENT PROHIBITION: The Second Party is strictly prohibited from sub-letting, parting with possession, or assigning any portion of the premises to third parties without prior written consent.

ATTESTATION BY INDEPENDENT WITNESSES (AS PER APPLICABLE LAW)

First Witness

Signature:

Full Name:

Parent / Spouse:

Address:

Govt ID / Aadhaar:

Second Witness

Signature:

Full Name:

Parent / Spouse:

Address:

Govt ID / Aadhaar:

Page 1 of 1 • General Draft Template (A4)Jurisdiction: India (General)

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QUICK LEGAL SUMMARY (STATUTORY OVERVIEW)

What is a Demand Promissory Note for Monetary Loan?

A Demand Promissory Note in India is a formal negotiable instrument under Section 4 of the Negotiable Instruments Act 1881 wherein the borrower (maker) unconditionally promises in writing to pay a specified sum of money to the lender (payee) on demand, with or without interest, bearing a valid revenue stamp.

LEGAL VALIDITY & GOVERNING ACTS

Enforceability in Indian Courts

Legally admissible in summary recovery suits under Order 37 of the Code of Civil Procedure (CPC). Limitation period for recovery is 3 years from the date of execution.

Registration Rule:Registration is not required.

STAMP DUTY & NOTARIZATION

Execution on Stamp Paper

Must be affixed with adequate Indian Revenue Stamp (typically Rs 1 or as prescribed by state Indian Stamp Act schedule) and signed across the stamp.

PROCEDURE: Print first page on Non-Judicial Stamp Paper, attach subsequent pages on plain paper, and get notarized where applicable.

REQUIRED DOCUMENTS & VERIFICATION CHECKLIST

Documents Needed to Execute This Demand Promissory Note for Monetary Loan

Keep the following self-attested documents ready before signing and attesting the agreement:

ID and PAN card proofs of borrower and lender

Bank transfer receipt or Cheque counterfoil proving loan disbursement

CONTRACTUAL TERMS & CLAUSES

Essential Clauses in This Agreement Draft

Every clause is structured according to Indian statutory jurisprudence to safeguard the interests of both executing parties:

01.Unconditional Promise to Pay

Absolute obligation to repay the stated principal on demand without conditions.

02.Interest Computation

Specifies clear agreed interest rate accrued from disbursement until full discharge.

FREQUENTLY ASKED QUESTIONS

Legal FAQs on Demand Promissory Note for Monetary Loan

Why is a revenue stamp mandatory on a promissory note?

Under Section 35 of the Indian Stamp Act, an unstamped or improperly stamped promissory note is completely inadmissible in evidence and cannot be validated by paying a penalty later.

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General Legal DisclaimerThe draft template provided on this page is for general reference and self-help informational purposes only. Applicable legal provisions, stamp duty rates, and registration procedures vary across Indian states and specific factual situations. This document generator does not create an advocate-client relationship and is not a substitute for formal legal advice from a licensed advocate.