Document background
The Promissory Note For Personal Loan is a crucial document in Indonesian personal lending practices, used when an individual borrows money and needs to provide a formal, legally binding promise of repayment. This document type is governed by the Indonesian Civil Code (KUHPerdata) and must comply with regulations set by the Financial Services Authority (OJK) and Bank Indonesia. It serves as evidence of debt and outlines the terms of repayment, including the principal amount, interest rate, payment schedule, and consequences of default. The document is particularly important in Indonesia's growing personal finance sector, where formal documentation of lending arrangements is essential for legal protection of both parties. It can be used for various types of personal loans, from simple personal lending between individuals to more structured arrangements involving financial institutions.
