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The Simple Promissory Note For Personal Loan is a fundamental legal instrument used in Australian personal lending arrangements. This document is typically employed when individuals or financial institutions provide personal loans requiring formal documentation of the debt obligation. It serves as evidence of the loan and outlines essential terms including the loan amount, interest rate, repayment schedule, and default provisions. The document must comply with Australian consumer credit protection laws, including the National Consumer Credit Protection Act 2009 and relevant state legislation. While simpler than commercial loan agreements, this promissory note still provides adequate legal protection for both parties while maintaining clarity and enforceability in Australian courts. It's particularly useful for personal loans between family members, friends, or small-scale private lenders where a formal but straightforward documentation is desired.

1. Parties: Identifies the Lender and Borrower with their full legal names and addresses

2. Loan Amount and Promise to Pay: States the principal amount being borrowed and the Borrower's unconditional promise to repay the loan

3. Interest Rate: Specifies the agreed interest rate and how it is calculated

4. Payment Terms: Details of payment schedule, including payment amounts, frequency, and due dates

5. Method of Payment: Specifies acceptable payment methods and payment instructions

6. Prepayment: Terms regarding early payment options and any associated conditions

7. Default: Defines what constitutes a default and its consequences

8. Acceleration: Lender's right to demand immediate full payment under specified circumstances

9. Governing Law: Specifies that Australian law governs the agreement

10. Execution: Signature blocks for all parties and witness requirements