Requirements of a promissory note…

POSTED BY ingrid ON December 2, 2012 4:38 pm ONE COMMENT

I have downloaded a copy of promissory note. How do we execute it. I mean do we need to stick a revenue stamp and make the borrower sign across it. eg I am offering an amount 2 lakhs to Mr X as loan. Is it sufficient for him to sign or do I have to record a witness signature on th note. Please enlighten

One reply on this article “Requirements of a promissory note…”

  1. Bond Bhai says:

    1. There is no requirement that the “borrower” has to sign across the revenue stamp. You can however, keep a crossed stamp or uncrossed stamp. However, having a crossed will not let it be re-used.
    2. There is no need for a witness. If it is witnessed, then it would be considered as a bond and you might have to pay stamp duty on it.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.