What is the difference between a loan and a promissory note?

Both promissory notes and loan agreements fulfill the same purpose; they both evidence a debt owed between a borrower and a lender. However, in practice, a promissory note is generally not as detailed as a loan agreement. A loan agreement includes additional details regarding the promises and obligations of the parties as well the ability to include a guarantor as co-signer. Both agreements allow you to specify property as collateral for the loan. 

Was this helpful? /

Can't find what you are looking for?

Contact us here.