Promissory note
The signed legal document in which a borrower promises to repay a loan according to specified terms. The promissory note is the loan's enforceable contract.
Full definition
A promissory note is the signed legal document that obligates a borrower to repay a loan. It specifies the principal amount, APR, payment schedule, default conditions, and the lender's remedies on non-payment. The promissory note is the loan's enforceable contract; if the lender ever needs to sue for non-payment, the promissory note is the evidence. Both unsecured and secured loans have promissory notes; secured loans add a separate security agreement that establishes the lender's lien on the collateral.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Pre-qualificationA preliminary check that estimates the loan terms you might qualify for, based on a soft credit inquiry that does not affect your score.
- Pre-approvalA stronger lending check than pre-qualification, often involving a hard credit inquiry and a conditional commitment from the lender.
- UnderwritingThe lender's process of evaluating credit, income, identity, and risk before approving and pricing a loan.
- Co-signerA second person who agrees to repay your loan if you don't. A strong-credit co-signer can help you qualify or lower your APR.
- Co-applicantA second borrower who shares both the obligation to repay and access to the funds. Different from a co-signer.
- Loan servicerThe company that handles day-to-day loan management on behalf of the loan's owner: collecting payments, sending statements, processing payoffs, and (when needed) referring delinquent accounts to collection.
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