The Simple Interest Promissory Note is a fundamental financial instrument used in Malaysian business and personal transactions where one party promises to pay another a specified sum with simple interest. This document is particularly useful in situations requiring clear documentation of debt obligations, from personal loans to business financing arrangements. The note must comply with Malaysian legislation, including the Contracts Act 1950, Bills of Exchange Act 1949, and Moneylenders Act 1951, which govern contract formation, negotiable instruments, and interest rate limits respectively. The document typically includes the principal amount, interest rate, payment schedule, and default provisions, with optional elements such as security or guarantor provisions depending on the transaction's complexity. Given Malaysia's dual banking system, considerations may need to be made for Islamic banking principles when applicable.

1. Parties: Identifies the Promissor (maker) and Promissee (payee) with full legal names and addresses

2. Promise to Pay: Clear statement of the unconditional promise to pay the principal amount

3. Principal Amount: The original loan amount stated in both numbers and words to avoid ambiguity

4. Interest Rate: Simple interest rate expressed as an annual percentage, ensuring compliance with Malaysian Moneylenders Act

5. Payment Terms: Specifies payment schedule, due dates, and method of payment

6. Default Provisions: Consequences of missing payments and acceleration clause

7. Governing Law: Specification that Malaysian law governs the promissory note

8. Execution: Date and signature blocks for all parties