• December 2019
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Promissory Note Due on Demand

A promissory note due on demand is a legal instrument that documents one person’s promise to pay a sum of money to another immediately upon the lender’s request.

If you are thinking about lending money to a loved one, you are doing a brave and compassionate thing. After all, you are attempting to help someone in need while remaining unsure if you will be paid back in full. Every time a loan is made, some risk exists for the lender. Thankfully, a number of legal and financial resources can help you to protect your interests to the best of your ability as you make an effort to help a loved one who needs your assistance. For example, drafting a promissory note on demand can help to ensure that you are paid back and paid back on your terms. While a standard promissory note articulates the terms of a lending agreement, a promissory note on demand differs from this standard arrangement in that it will allow you to demand payment in-full, upon request. Of course, this is not an approach that you should embrace lightly, as demanding a loan repayment from a loved one in-full can be a stress-inducing way to handle things. However, it may make sense to process your loan this way, depending on your unique circumstances.


  • Loaning money that you want returned upon request
  • Borrowing money that must be returned upon request


A promissory note records a financial transaction that involves repayment upon a debt. The promissory note will include all relevant details of a debt, including the date by which the debt must be repaid, any fees or interest that may apply, the parties involved in the transaction, and all other terms and conditions of the loan. In circumstances where lenders want to be able to call in the debt at any time, promissory notes include a condition that the debt must be paid immediately following the lender’s request. This type of promissory note is a promissory note due on demand. A promissory note due on demand documents in writing your intent to repay a loan within a fixed time of receiving an official demand from your lender. This provides some additional protection to the lender against the risk of borrower default and can give the lender certain rights regarding legal enforcement if the parties end up in court. Promissory notes due on demand may be negotiated on a payment scale, but the borrower bears the risk of the lender calling in all of the remaining debt on the loan. If the lender so chooses, it can demand payment of the entire debt at any time during the term of the promissory note due on demand, unless the parties have expressly agreed otherwise. Regardless of whether you are the borrower or the person making the loan, promissory notes are an effective way to formalize a repayment agreement between two parties. Many common financial transactions, such as taking out a mortgage, require a promissory note as a matter of law or best practice, so a promissory note is a financial instrument that everyone should be aware of.

If you are loaning money to a loved one and want to be able to demand full repayment upon request, consider using this template to draft a promissory note due on demand. The template is customizable, so you can articulate the specific terms of your unique arrangement, including a repayment schedule, interest rates and the amount of the loan in question. Please make sure to keep a copy of your completed agreement for your records so that you can easily reference it at any point in the future.


Alternate Names

Note Payable Due on Demand