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Promissory Note Without Interest for Singapore

Promissory Note Without Interest Template for Singapore

A Promissory Note Without Interest is a legally binding financial instrument under Singapore law that documents an unconditional written promise made by one party (the maker) to pay a definite sum of money to another party (the payee) at a specified future date. Governed by Singapore's Bills of Exchange Act and Contracts Act, this document serves as evidence of debt without any interest charges, making it suitable for interest-free loans and financial arrangements.

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Promissory Note Without Interest

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What is a Promissory Note Without Interest?

The Promissory Note Without Interest is commonly used in Singapore when parties need to formalize an interest-free loan or payment arrangement. This document is particularly useful for business transactions, personal loans, or installment payments where interest is not desired or permitted. It must comply with Singapore's legal framework, particularly the Bills of Exchange Act and Contracts Act, and includes essential elements such as the payment amount, payment date, and parties' details. The note serves as clear evidence of debt and can be used for enforcement in Singapore courts if necessary.

What sections should be included in a Promissory Note Without Interest?

1. Promise to Pay: Unconditional promise to pay a specific sum, including maker's full commitment to pay

2. Payment Details: Specific sum to be paid (in numbers and words), payment date, and confirmation of no interest

3. Maker Information: Full legal name, address, and contact details of the person making the promise

4. Payee Information: Full legal name, address, and contact details of the person to whom payment is promised

5. Governing Law: Statement that the note is governed by Singapore law

6. Execution: Signature block with date of execution and witness details

What sections are optional to include in a Promissory Note Without Interest?

1. Place of Payment: Specific location where payment should be made if different from Payee's address

2. Payment Method: Specified method of payment (e.g., bank transfer, cheque) if requiring specific payment method

3. Acceleration Clause: Conditions under which the full payment becomes immediately due and payable

4. Default Provisions: Consequences of default and remedies available to the payee

What schedules should be included in a Promissory Note Without Interest?

1. Payment Schedule: Detailed schedule of payments if the amount is to be paid in installments

2. Security Details: Description of any collateral or security provided to secure the promise

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions




















Clauses




















Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore

Bills of Exchange Act (Cap. 23): Regulates negotiable instruments including promissory notes, their form, and legal effect

Moneylenders Act (Cap. 188): Ensures compliance with moneylending regulations and prevents violation of usury laws

Civil Law Act (Cap. 43): Governs the enforceability of contracts and civil obligations in Singapore

Stamp Duties Act (Cap. 312): Determines stamp duty requirements and obligations for promissory notes

Limitation Act (Cap. 163): Sets time limits for enforcement of promissory notes and other contractual obligations

Banking Act (Cap. 19): Relevant when promissory notes involve financial institutions or banking transactions

Currency Act (Cap. 69): Governs the currency requirements for financial instruments in Singapore

Evidence Act (Cap. 97): Regulates the admissibility of documents as evidence in legal proceedings

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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