South Carolina 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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South Carolina rules that this document follows

Maximum interest (private loans)8.75% per year — No cap on interest agreed in writing between private parties; 8.75% absent agreement; supervised consumer lenders must post/file rates under § 37-3-201Source: S.C. Code § 34-31-20(A); § 37-3-201
Legal rate when none is stated8.75%Source: S.C. Code § 34-31-20(A)
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 note3 yearsSource: S.C. Code § 15-3-530(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 South Carolina

Keep the interest rate at or below the South Carolina 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 South Carolina?

8.75% per year for a private written loan (S.C. Code § 34-31-20(A); § 37-3-201). No cap on interest agreed in writing between private parties; 8.75% absent agreement; supervised consumer lenders must post/file rates under § 37-3-201

Does a promissory note need a notary or witnesses?

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

3 years from default (S.C. Code § 15-3-530(1)).

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