Promissory Note With Interest Template for Saudi Arabia

A Promissory Note With Interest is commonly used in Saudi Arabian commercial transactions when one party needs to formally document a promise to pay another party a specific sum of money with interest. This instrument is particularly relevant in business financing, commercial loans, and large-scale transactions where deferred payment is required. The document must carefully balance compliance with Saudi Arabia's Commercial Papers Regulation and Sharia law principles, especially regarding the structure of interest provisions. It includes essential elements such as the principal amount, interest rate, payment schedule, and parties' details, while potentially incorporating features like guarantees or security arrangements. The document's format and content must meet specific requirements under Saudi law to be enforceable in Saudi courts.

1. Date and Place of Issuance: Specific date and location where the promissory note is issued, which is essential for validity

2. Promise to Pay Statement: Unconditional promise to pay a specific sum, including the principal amount in both numbers and words

3. Parties Information: Full legal names and addresses of both the maker (promisor) and the payee (promisee)

4. Payment Terms: Specific date or dates when payment is due, including installment schedule if applicable

5. Interest Rate: Clear statement of the applicable interest rate and calculation method, structured in compliance with local regulations

6. Place of Payment: Specific location where payment must be made

7. Signature Block: Space for maker's signature and any required witnesses