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• A loan note is a promissory agreement describing the terms of a loan and committing the person or institution borrowing the money to live up to those terms.

  For example, a mortgage loan note states the principal balance, the interest rate, the discount points, a payment schedule and due date, and any potential penalties for violating the repayment terms.

  When the required repayment has been made, the agreement between the parties ends.

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  Cite Definition for Loan note

  American Psychological Association (APA)

  Loan note. (n.d.). Yahoo Personal Finance Glossary. Retrieved March 21, 2023, from website: http://www.expertglossary.com/definition/loan-note.

  Chicago Manual of Style (CMS)

  Loan note. finance.yahoo.com. Yahoo Personal Finance Glossary. Yahoo Finance. http://www.expertglossary.com/definition/loan-note (accessed: March 21, 2023).

  Modern Language Association (MLA)

  "Loan note." Yahoo Personal Finance Glossary. Yahoo Finance. 21 March. 2023 http://www.expertglossary.com/definition/loan-note.

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