Louisiana 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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Louisiana rules that this document follows

Maximum interest (private loans)12% per year — Conventional interest may not exceed 12% per year; commercial/business loans and loans to corporations are exempt from the cap (§ 9:3509)Source: La. R.S. 9:3500(C)(1); § 9:3509
Legal rate when none is statedSee statuteSource: La. R.S. 13:4202 (judicial/legal rate set annually by the Commissioner of Financial Institutions); La. Civ. Code art. 2000
Late feesNo 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 note5 yearsSource: La. Civ. Code art. 3498 (promissory notes, 5 years); art. 3499 (other contracts, 10 years)
Notarization / witnessesNot 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 Louisiana

Keep the interest rate at or below the Louisiana 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 Louisiana?

12% per year for a private written loan (La. R.S. 9:3500(C)(1); § 9:3509). Conventional interest may not exceed 12% per year; commercial/business loans and loans to corporations are exempt from the cap (§ 9:3509)

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in Louisiana. 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 (La. Civ. Code art. 3498 (promissory notes, 5 years); art. 3499 (other contracts, 10 years)).

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