California Unsecured Promissory Note (2026)
A personal promise to repay, with no property pledged — common between friends and family. Interest limit in California: 10% per year if the money is used mainly for personal, family or household purposes; for other purposes, the higher of 10% or 5% plus the Federal Reserve Bank of San Francisco rate (Cal. Const. art. XV §1). Fees, bonuses and discounts count as interest.
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California promissory note: key facts
- Maximum interest (usury limit)
- 10% per year if the money is used mainly for personal, family or household purposes; for other purposes, the higher of 10% or 5% plus the Federal Reserve Bank of San Francisco rate (Cal. Const. art. XV §1). Fees, bonuses and discounts count as interest.
- Legal rate when the note sets none
- 7% per year (Cal. Const. art. XV §1).
- Time limit to sue
- California: generally 6 years after the due date for a promissory note (Commercial Code §3118).
- Notary required?
- No requirement was found for a simple promissory note; notarizing is optional. A lien on real estate needs a separate mortgage or deed of trust.
Official sources: California Constitution, art. XV §1 · Superior Court of California, Santa Clara — statutes of limitation · Last reviewed: October 2026
Frequently asked questions
- What is the maximum interest rate on a personal loan in California?
- 10% per year if the money is used mainly for personal, family or household purposes; for other purposes, the higher of 10% or 5% plus the Federal Reserve Bank of San Francisco rate (Cal. Const. art. XV §1). Fees, bonuses and discounts count as interest. Our form blocks rates above the safe limit for your state.
- Does a promissory note need to be notarized in California?
- No requirement was found for a simple promissory note; notarizing is optional. A lien on real estate needs a separate mortgage or deed of trust.
- Secured or unsecured: which one do I need?
- Use a secured note when the borrower pledges property, such as a car or equipment, that the lender can enforce against after a default. Use an unsecured note for a simple personal promise to repay.
- How long do I have to sue on an unpaid note in California?
- California: generally 6 years after the due date for a promissory note (Commercial Code §3118).
- Can I get it in Spanish?
- Yes. You sign the English note and also receive a Spanish reference translation and Spanish instructions.
DoneDoc provides self-help forms and is not a law firm. We recommend having your document reviewed by a licensed attorney in your state before signing.
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