Promissory note
Ria
(Querist) 19 May 2009
This query is : Resolved
Dear experts,
I would like to know whether a promissory note should be executed on a stamp paper, if not then what is the procedure.
Also as an individual can I legally lend money to someone on a monthly interest and make a mention of the interest rate on the promissory note.
Also please guide me with format of a promissory note.
Y V Vishweshwar Rao
(Expert) 19 May 2009
Pronote Should be stamped with Sfficient Stamp vlaue
The Individual occational lendign with interest , to known persons and relatives is not prohibited , provided it is not a business.
A V Vishal
(Expert) 19 May 2009
Dear Ria:
Their is no requirement of executing a Pronote on a Stamp paper, but, it should be adaequately stamped with revenue stamp. Below is the value of stamping required for different slabs of loan advanced:
Promissory Note as defined by Section 2 (22)-
(a)when payable on demand-
(i)when the amount or value does not exceed Rs.250; - Ten paise.
(ii)when the amount or value exceeds Rs.250 but does not exceed Rs.1000.- Fifteen paise.
(iii)in any other case;- Twenty-five paise.
(b)when payable otherwise than on demand.- The same duty as a Bill of Exchange for the same amount payable otherwise than on demand.
A V Vishal
(Expert) 19 May 2009
FORM No.1
PROMISSORY NOTE UNDER SEC.4, NEGOTIABLE INSTRUMENTS ACT,
1881 IN WHICH NO INTEREST IS CONTEMPLAIED AND NO TIME FOR
PAYMENT IS MENTIONED
I, Sri._____________________ S/o. _________________________
promise to pay Sri.___________________ S/o.________________
_____________ or order, the sum of Rs.______ (Rupees______________only)
Place:
Date: Signature.
FORM No.2
PROMISSORY NOTE UNDER SEC.4, NEGOTIABLE INSTRUMENTS ACT,
1881 MADE BY JOINT PROMISORS
We, Sri.______________________ S/o._____________________ and
Sri.______________________ S/o._________________________ acknowledge
ourselves to be indebted to Sri.______________________
S/o._____________________ in Rs.________ (Rupees________________only)
to be paid on demand, for value received.
Place: [Signed]
Date:
[Signed]
FORM No.3
JOINT PROMISSORY NOTE
We, Sri.______________________ S/o._____________________ and
Sri.______________________ S/o._________________________ promise to pay
Sri.______________________ S/o._____________________ the sum of
Rs.________ (Rupees________________only) for value received.
Place: [Signed]
Date:
[Signed]
FORM No.4
PROMISSORY NOTE PROVIDING FOR INTEREST
I, Sri.______________________ S/o._____________________promise to
pay Sri.______________________ S/o._____________________ or order, on
demand, the sum of Rs.______ (Rupees___________________only) with interest
at the rate of ________ per cent. per mensem / annum from the date of these
presents, for value received.
Place:
Date: Signature.
FORM No.5
PROMISSORY NOTE PAYABLE BY INSTALMENT
I Sri.______________________ S/o._____________________ promise to pay to
Sri.______________________ S/o._____________________ the sum of
Rs._________ (Rupees ___________________only) by four equal instalments,
the first instalment of Rs.______ (Rupees________________only) to be paid on
the _______ day of __________ the second, on the day of _________ the third on
the ________ day of __________ and the fourth on the__________ day of with
interest thereon at the rate of ________ per cent. per mensem / annum (the interest
to cease on the instalment paid) in consideration of full value received.
Place:-
Date:-
Signature.
Swami Sadashiva Brahmendra Sar
(Expert) 19 May 2009
