A Massachusetts unsecured promissory note is a legal document that outlines the terms of an unsecured loan. It includes the interest rate, installment schedule, late fees, and due date. The borrower does not need to provide collateral, but it’s essential for the lender to only select trustworthy individuals who will repay the debt on time.
If the borrower defaults, legal action may be taken against them. It’s recommended that the lender only lend to family, friends, or those with a high credit score due to the lack of financial protection for unsecured loans.
