Minnesota 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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Minnesota rules that this document follows

Maximum interest (private loans)8% per year — 8% per year max by written contract; loans over $100,000, loans to corporations/business entities, and real-estate loans are exempt (§ 334.01 subd. 2; § 334.011)Source: Minn. Stat. § 334.01
Legal rate when none is stated6%Source: Minn. Stat. § 334.01 subd. 1
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 note6 yearsSource: Minn. Stat. § 541.05 subd. 1(1)
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 Minnesota

Keep the interest rate at or below the Minnesota 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 Minnesota?

8% per year for a private written loan (Minn. Stat. § 334.01). 8% per year max by written contract; loans over $100,000, loans to corporations/business entities, and real-estate loans are exempt (§ 334.01 subd. 2; § 334.011)

Does a promissory note need a notary or witnesses?

No. A note signed by the borrower is enforceable in Minnesota. 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?

6 years from default (Minn. Stat. § 541.05 subd. 1(1)).

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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.