South Carolina Demand Promissory Note Overview
A demand promissory note in South Carolina is a flexible loan agreement where the lender can request full repayment at any time. There is no fixed maturity date — the loan remains outstanding until the lender makes a formal demand. The maximum interest rate in South Carolina is 8.75% (default).
8.75% default; no general cap for written agreements. Demand notes are commonly used in South Carolina for family loans, loans between friends, shareholder loans, and informal business financing where both parties want flexibility.
Regarding demand notice in South Carolina: No specific period; reasonable demand required. The statute of limitations for collecting on a promissory note in South Carolina is 3 years (oral and written), though the start date for demand notes can vary.
8.75% (default)
Usury rate cap
On Demand
No fixed maturity
3 years
Statute of limitations
30 Days
Recommended notice
South Carolina Legal Requirements
South Carolina has specific requirements for demand promissory notes:
Important: South Carolina Usury & Demand Rules
South Carolina's maximum interest rate is 8.75% (default). No specific period; reasonable demand required. Specify a clear notice period in your note to avoid disputes.
- Written Agreement: Must be in writing and signed by the borrower
- Demand Clause: Clearly state the note is “payable on demand”
- Notice Period: Specify days borrower has to pay after written demand (30-90 days recommended)
- Compliant Interest Rate: Must not exceed South Carolina's 8.75% (default) usury cap
- Delivery Method: Specify how demand must be delivered (certified mail recommended)
- Governing Law: Specify South Carolina as the governing jurisdiction
Making a Demand in South Carolina
When the lender is ready to call in the loan, they must follow proper demand procedures:
Prepare the Demand Letter
State the total amount owed (principal + accrued interest), reference the original note, and specify the deadline for payment
Send via Certified Mail
Send the demand letter by certified mail with return receipt to prove delivery under South Carolina law
Wait the Notice Period
Allow the borrower the full notice period specified in the note (or a reasonable time if not specified) to arrange payment
Pursue Collection if Unpaid
Demand letter, suit in magistrate or circuit court
Collection Procedures in South Carolina
If the borrower fails to pay after a proper demand, the lender can pursue legal remedies in South Carolina.
| Aspect | South Carolina Rule |
|---|---|
| Usury Rate | 8.75% (default) |
| Demand Notice | No specific period; reasonable demand required |
| Statute of Limitations | 3 years (oral and written) |
| Collection Procedure | Demand letter, suit in magistrate or circuit court |
Sample South Carolina Demand Promissory Note
Below is a preview of our South Carolina-specific demand promissory note template.
STATE OF SOUTH CAROLINA
DEMAND PROMISSORY NOTE
Payable on Demand — No Fixed Maturity
FOR VALUE RECEIVED, the undersigned promises to pay ON DEMAND to the order of Lender the sum of $[Amount]
LENDER:
Name: [Lender Name]
Address: [South Carolina Address]
BORROWER:
Name: [Borrower Name]
Address: [South Carolina Address]
TERMS
Interest: [Rate]% per annum (max 8.75% (default) in SC)
Payable within 30 days of written demand by Lender
South Carolina Demand Promissory Note FAQ
Answers to common questions about demand promissory notes in South Carolina.
Official South Carolina Resources
Official resources for South Carolina lending laws and court procedures.
Other South Carolina Promissory Note Types
Need a different type of promissory note for South Carolina?
South Carolina Secured Promissory Note
Collateral-backed loan agreement
South Carolina Unsecured Promissory Note
No collateral required
General Promissory Note
Standard promissory note template
South Carolina Loan Agreement
Comprehensive loan documentation
South Carolina Bill of Sale
Document property transfers
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