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The Personal Guarantee Promissory Note is commonly used in Indian business and financial transactions where additional security is required for credit arrangements. This document type is particularly valuable when a lender requires both an unconditional promise to pay and a personal guarantee as security. The document must comply with Indian legal requirements, particularly the Negotiable Instruments Act, 1881, and the Indian Contract Act, 1872. It typically includes specific payment terms, interest rates, default provisions, and guarantee obligations. This instrument is frequently used in business loans, commercial transactions, and personal lending situations where the creditor seeks additional security beyond the primary debtor's promise to pay. The personal guarantee component makes it particularly useful for small business loans where business owners personally guarantee corporate obligations.

1. Parties: Identifies the Maker (Principal Debtor), the Payee (Creditor), and the Personal Guarantor with their full legal names, addresses, and other identification details

2. Background: Describes the context of the underlying debt and the reason for the personal guarantee

3. Definitions: Defines key terms used in the document including 'Principal Amount', 'Interest Rate', 'Due Date', and 'Event of Default'

4. Promise to Pay: Contains the unconditional promise to pay the specified amount, including interest rate and payment terms

5. Guarantee Terms: Specifies the guarantor's obligation to pay upon default by the principal debtor

6. Rights and Obligations of the Guarantor: Details the guarantor's responsibilities, including waiver of notice and consent requirements

7. Events of Default: Lists circumstances that constitute default and trigger the guarantee obligations

8. Enforcement: Describes the process and rights for enforcing the promissory note and guarantee

9. Governing Law and Jurisdiction: Specifies Indian law as governing law and designates jurisdiction for disputes