POSTED BY December 2, 2012 4:38 pm ONE COMMENTON
I have downloaded a copy of promissory note. How do we execute it. I mean do we need to stick a revenue stamp and make the borrower sign across it. eg I am offering an amount 2 lakhs to Mr X as loan. Is it sufficient for him to sign or do I have to record a witness signature on th note. Please enlighten
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One reply on this article “Requirements of a promissory note…”
1. There is no requirement that the “borrower” has to sign across the revenue stamp. You can however, keep a crossed stamp or uncrossed stamp. However, having a crossed will not let it be re-used.
2. There is no need for a witness. If it is witnessed, then it would be considered as a bond and you might have to pay stamp duty on it.