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An Unsecured Promissory Note is commonly used in Indian business and personal transactions where one party needs to formalize a promise to repay a debt without offering any collateral. This document is particularly useful in situations involving trust-based lending, short-term financing needs, or when the borrower's creditworthiness alone is deemed sufficient security. Governed by the Negotiable Instruments Act, 1881, and other relevant Indian legislation, the note must contain specific elements to be legally enforceable, including clear identification of parties, a definite promise to pay, specified amount, and payment terms. The document's unsecured nature makes it particularly important to include clear default provisions and enforcement mechanisms while ensuring compliance with Indian stamp duty requirements and state-specific regulations.

1. Identification of Parties: Names, addresses, and legal capacity of the maker (promisor) and payee (promisee)

2. Promise to Pay: Unconditional promise to pay a specific sum of money, including the principal amount in both figures and words

3. Interest Rate: Specified rate of interest, calculation method, and payment frequency

4. Payment Terms: Due date, payment schedule, mode of payment, and place of payment

5. Execution: Date and place of execution, signature requirements, and witness details