A Wisconsin promissory note is a formal agreement facilitating the lending process between two parties (a borrower and a lender). It details the terms under which the borrower is borrowing and repaying the agreed-upon amount, promoting clarity and a mutual understanding between the two parties.
This document contains essential loan details, including the initial amount, the relevant interest rate, repayment information, and repercussions for delinquent payments. It’s ideal for individuals who know each other well, as they can write it without needing a loan officer to create the arrangement.
By Type
Usury Laws and Interest Rates
The state’s usury laws are present in Chapter 138 (Money and Rates of Interest) of the Wisconsin Statutes, and you must abide by them when writing a promissory note.
- Without a Contract (§ 138.04): 5%.
- With a Contract (§ 138.05(1)(a)): 12%.
- For Loans Over $3,000 by Licensees (§ 138.09(7)(bn)(2)): 21%, 6% over the 2-year U.S. treasury note rate, or 6% over the 6-month treasury bill rate, whichever is greater.
- For Loans Under $3,000 by Licensees (§ 138.09(7)(bn)(1)): 23%, 6% over the 2-year U.S. treasury note rate, or 6% over the 6-month treasury bill rate, whichever is greater.
- For Payday Loans After the Maturity Date (§ 138.14(10)(a)): 2.75% per month.
- For Payday Loans Before the Maturity Date (§ 138.14(10)(a)): No limit.