Arkansas Promissory Note
A secured or unsecured loan note with installment or lump-sum repayment, interest within your state's legal limit, late fees and default terms.
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Arkansas rules that this document follows
| Maximum interest (private loans) | 17% per year — Constitutional cap of 17% per year on all loans; consumer loans also capped at 17%Source: Ark. Const. amend. 89, §§ 3, 5 |
|---|---|
| Legal rate when none is stated | 6%Source: Ark. Code § 4-57-101 (6% absent agreement) |
| Late fees | No statutory cap on late fees for private (non-consumer-lender) loans; fee must be a reasonable liquidated-damages estimate and, together with interest, must not push the effective rate above the usury ceiling |
| Time to sue on a written note | 5 yearsSource: Ark. Code § 16-56-111 |
| Notarization / witnesses | Not required (optional for evidentiary value) |
Rules current as of 2026-09-07. Statutes change; verify before relying on them.
How to use this Promissory Note in Arkansas
Keep the interest rate at or below the Arkansas ceiling shown above; a usurious note can cost the lender all interest and more. For loans between family members, the IRS applicable federal rate (AFR) is the minimum to avoid imputed-gift issues on loans above $10,000.
Sign one original; the lender keeps it and the borrower keeps a copy. When the note is paid, the lender should mark it 'PAID IN FULL' and return it.
Frequently asked questions
What is the maximum interest rate I can charge in Arkansas?
17% per year for a private written loan (Ark. Const. amend. 89, §§ 3, 5). Constitutional cap of 17% per year on all loans; consumer loans also capped at 17%
Does a promissory note need a notary or witnesses?
No. A note signed by the borrower is enforceable in Arkansas. Notarizing is optional; for a secured loan, file a UCC-1 or note the lien on the vehicle title to protect the lender.
How long can the lender sue on an unpaid note?
5 years from default (Ark. Code § 16-56-111).
Related documents
- Independent Contractor Agreement — Arkansas
- Non-Disclosure Agreement (NDA) — Arkansas
- LLC Operating Agreement — Arkansas
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FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.
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