Promissory Note Template (Singapore)
A promissory note is one of the oldest and most efficient financial instruments available for evidencing a debt in Singapore. Our free Singapore promissory note template is structured in accordance with the Bills of Exchange Act (Cap. 23), making it a negotiable instrument that is legally enforceable in Singapore courts and recognised by Singapore banks and financial institutions as a valid written promise to pay.
What Is a Promissory Note?
A promissory note is an unconditional written promise made by one party (the maker) to pay a specific sum of money to another party (the payee) — either on demand or at a fixed future date. Unlike a loan agreement, which documents the terms and conditions of a lending relationship in detail, a promissory note is a simple, self-contained instrument: it names the parties, states the amount, specifies when payment is due, and is signed by the maker. Its simplicity and legal certainty make it a widely used instrument for recording private debts, securing payment obligations, and — in its negotiable form — being transferred to a third party.
In Singapore, promissory notes are governed by the Bills of Exchange Act (Cap. 23), which is based on and closely follows the United Kingdom Bills of Exchange Act 1882. To be a valid promissory note under Singapore law, the instrument must be in writing, signed by the maker, contain an unconditional promise to pay a certain sum of money, be payable on demand or at a fixed or determinable future time, and be payable to order or to bearer. A promissory note that satisfies these requirements is a negotiable instrument — the payee may endorse and transfer it to a third party (the holder), who takes it free of most defects in the original transaction if they are a holder in due course.
In Singapore, stamp duty is payable on promissory notes under the Stamp Duties Act (Cap. 312). The rate is S$0.20 per S$200 or part thereof of the face value, for notes payable on demand or within three days. For notes payable at a future date, the same ad valorem rate applies. Promissory notes must be stamped before they are presented for payment or produced as evidence in Singapore court proceedings. The Singapore courts — including the State Courts (District Court and Magistrates' Court) and the High Court — treat stamped promissory notes as strong prima facie evidence of the debt, and enforcement actions based on a promissory note are among the most straightforward debt recovery mechanisms available in Singapore.
What This Template Covers
Our Singapore promissory note template includes all elements required under the Bills of Exchange Act (Cap. 23) to create a valid, enforceable, and negotiable instrument.
Maker's Details
Full name and address of the person making the promise to pay (the maker / promisor).
Payee's Details
Full name of the payee (person to whom payment is promised), with an option for "pay to the order of" to preserve negotiability.
Principal Amount
The exact sum in Singapore dollars (S$) to be paid, written in both figures and words to prevent alteration disputes.
Unconditional Promise Language
Prescribed opening words: "I promise to pay…" — satisfying the Bills of Exchange Act requirement for an unconditional promise.
Payment Terms — Demand or Fixed Date
Choice between a demand promissory note (payable immediately on demand) or a term note (payable on a specific future date or after a stated period).
Interest Clause
Optional interest rate on the principal, accruing from the date of the note or from the due date until full payment, expressed as an annual percentage.
Default Interest
Higher interest rate applying after the due date if the maker fails to pay, incentivising timely payment.
Place of Payment
Specified location in Singapore where payment is to be made — typically the payee's bank account or address.
Endorsement Block
Space for the payee to endorse the note to a third party, preserving negotiability under the Bills of Exchange Act (Cap. 23).
Maker's Signature
Signature block for the maker, with date of execution. The note is not valid until signed by the maker.
Stamp Duty Acknowledgement
Confirmation of which party is responsible for payment of Singapore stamp duty under the Stamp Duties Act (Cap. 312).
How to Create a Singapore Promissory Note
Follow these steps to produce a valid, stamped, and enforceable promissory note in Singapore.
- 1
Fill in the Parties and Amount
Enter the maker's and payee's full legal names. State the principal amount in Singapore dollars in both figures and words — for example, "S$5,000 (Singapore Dollars Five Thousand only)". Ambiguity in the amount is one of the most common reasons a promissory note is disputed.
- 2
Choose Demand or Fixed-Date Payment
Decide whether the note is payable on demand (the payee can demand payment at any time) or on a specific fixed date. A demand note creates immediate flexibility for the payee; a fixed-date note gives the maker certainty of the payment timeline.
- 3
Add Interest Terms (if applicable)
If interest is to accrue on the outstanding principal, state the annual interest rate clearly. Include a clause for default interest at a higher rate to incentivise timely payment in Singapore.
- 4
Sign the Note
The maker signs the promissory note. Unlike a loan agreement, only the maker's signature is required — the payee accepts by receiving the note. Electronic signatures may not be appropriate for negotiable instruments; ink signatures are safer for Singapore promissory notes to be presented to banks.
- 5
Stamp the Note via IRAS e-Stamping
Pay Singapore stamp duty through the IRAS e-Stamping portal before presenting the note for payment or producing it in Singapore court proceedings. The duty is S$0.20 per S$200 of face value. Stamping within fourteen days of execution avoids penalties.
Legal Considerations
Promissory notes under Singapore law are powerful, simple instruments — but their legal effect depends on strict compliance with the Bills of Exchange Act (Cap. 23). Key points are set out below.
This template is provided for informational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a Singapore-qualified lawyer or visit the Law Society of Singapore.
Reviewed for Singapore Law
Bills of Exchange Act (Cap. 23) — Validity Requirements
Under the Singapore Bills of Exchange Act (Cap. 23), a document is only a promissory note if it is: (a) in writing; (b) signed by the maker; (c) an unconditional promise to pay a certain sum of money; (d) payable on demand or at a fixed or determinable future time; and (e) payable to a specified person or to bearer. If any of these elements is absent — for example, if the promise is conditional ("I will pay if the goods are delivered") — the instrument is not a promissory note under Singapore law and loses the special legal protections and negotiability that the Act confers. In such cases, the document may still be enforceable as an ordinary contract, but the payee cannot rely on promissory note enforcement procedures.
Negotiability and Holder in Due Course
One of the most important features of a Singapore promissory note is its negotiability. The payee may endorse the note and transfer it to a third party. If that third party takes the note in good faith, for value, and without notice of any defect, they become a "holder in due course" under the Bills of Exchange Act (Cap. 23) and can enforce the note against the maker free of most defences that the maker might have raised against the original payee — such as failure of consideration. This makes Singapore promissory notes a useful commercial financing tool.
Stamp Duties Act (Cap. 312) — Consequences of Non-Stamping
An unstamped Singapore promissory note cannot be produced in evidence in any Singapore court proceedings, and cannot be acted upon in Singapore. Under the Stamp Duties Act (Cap. 312), an unstamped promissory note may be stamped late on payment of the outstanding duty plus a penalty (typically S$10 or the unpaid duty, whichever is higher, for minor delays). In practice, lenders in Singapore always stamp promissory notes promptly via the IRAS e-Stamping portal to avoid any argument that the note is inadmissible.
Frequently Asked Questions
Create Your Singapore Promissory Note Today
Generate a Bills of Exchange Act compliant promissory note in minutes. Enter the amount and payment terms, download the PDF, and stamp via IRAS e-Stamping for full enforceability in Singapore courts.
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