Texas Promissory Note (2026)
A Texas promissory note records a loan: amount, interest, payments, late fee and default. 10% per year unless the law provides otherwise (Finance Code §302.001). Optional ceilings in Chapter 303 may allow more — ask an attorney before using a higher rate.
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- Secured Promissory NoteThe borrower pledges property (a car, equipment) as security for the loan.
- Unsecured Promissory NoteA personal promise to repay, with no property pledged — common between friends and family.
Texas promissory note: key facts
- Maximum interest (usury limit)
- 10% per year unless the law provides otherwise (Finance Code §302.001). Optional ceilings in Chapter 303 may allow more — ask an attorney before using a higher rate.
- Legal rate when the note sets none
- 6% per year starting the 30th day after the due date, if no rate was agreed (Finance Code §302.002).
- Time limit to sue
- Texas: 4 years for a debt (Civil Practice and Remedies Code §16.004).
- 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.
- Late fees
- On a loan at 10% or less, a late charge of up to the greater of 5% of the installment or $7.50 (Finance Code §302.001).
Official sources: Texas Finance Code, Chapter 302 · Texas State Law Library — Debt statute of limitations · Last reviewed: October 2026
Frequently asked questions
- What is the maximum interest rate on a personal loan in Texas?
- 10% per year unless the law provides otherwise (Finance Code §302.001). Optional ceilings in Chapter 303 may allow more — ask an attorney before using a higher rate. Our form blocks rates above the safe limit for your state.
- Does a promissory note need to be notarized in Texas?
- 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 Texas?
- Texas: 4 years for a debt (Civil Practice and Remedies Code §16.004).
- 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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