An Indiana unsecured promissory note outlines the repayment terms for a loan without any collateral. Unsecured loans are riskier for lenders if the borrower defaults, which is why they are usually reserved for those with strong credit histories or close personal relationships. These types of loans also tend to have higher interest rates compared to secured loans.
In the event of default, the lender may take legal action or hire a debt collection agency. The promissory note will cover payment details, interest rates, late fees, and acceleration time frames. However, it’s important to note that an unsecured promissory note does not provide the lender with any concrete means of reimbursement if the borrower defaults.
