Hey Friend,Before beginning my discussion about the promissory note validity period in India, I would like to brief you on what is promissory note. A promissory note is a written agreement between three people that are involved in financing: the maker, the lender, and the payee/borrower. Calculate EMI on a home loan through NoBroker EMI calculatorGet stress-free home loan disbursal through NoBrokerThis note includes terms of the issuance, information on the debt such as the loan's terms, the bearer's identity and who it was issued to, the note's maturity date, whether interest is payable on the principal or not, and more. It is a written assurance from the lender to the borrower that they may obtain funds from the lender in the manner agreed upon after the agreement. The maker may also serve as the lender.Highlights of Promissory Notes:
As of July 1st, 2017 in India, promissory notes are subject to an 18% GST.
A promissory note is ineffective unless it includes information about the type of credit, how it will be repaid, how long it will take to repay it, the signatures of all parties, the terms that were agreed upon when the loan was approved, the interest rate, and all other relevant terms.
A promissory note is unconditional on its own. It only applies to the parties identified in the note as the lender and the borrower. Because of this, the note is a superb negotiating tool on the money market.
The note must be handwritten.
As required by the Indian Stamp Act, the note needs to be revenue-stamped.
The validity period of promissory note is limited to three years.
There is no cap on how much can be borrowed in order to issue a promissory note.
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What is Promissory Note Validity Period?
Riya
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November 4, 2022
2022-11-04T17:31:59+00:00 2022-11-04T17:32:04+00:00Comment
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