Missouri Unsecured Promissory Note Overview
An unsecured promissory note in Missouri is a loan agreement where the borrower promises to repay without pledging any collateral. The lender relies on the borrower's creditworthiness and the legally enforceable promise to pay. The maximum interest rate in Missouri is 9% (default).
9% default rate; no general usury cap for written agreements. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with Missouri's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within Missouri's statute of limitations (5 years (oral), 10 years (written)). The small claims court limit in Missouri is $5,000, which is ideal for smaller unsecured loans.
9% (default)
Usury rate cap
5 years
Statute of limitations
$5,000
Small claims limit
25%
Max garnishment
Missouri Legal Requirements
Missouri has specific requirements for unsecured promissory notes:
Important: Missouri Usury Laws
Missouri's maximum interest rate is 9% (default). 9% default rate; no general usury cap for written agreements. Exceeding this limit may void the interest or result in penalties.
- Written Agreement: Must be in writing, signed by borrower, clearly stating loan terms
- Compliant Interest Rate: Must not exceed Missouri's 9% (default) usury cap
- No Collateral Statement: Explicitly state that the note is unsecured with no collateral pledged
- Default Provisions: Events of default, cure period, acceleration clause, and collection remedies
- Personal Guarantee: Recommended for business borrowers to protect the lender
- Governing Law: Specify Missouri law as the governing jurisdiction
Collection Remedies in Missouri
If a borrower defaults on an unsecured promissory note in Missouri, the lender has several collection options:
Send a Formal Demand Letter
Written notice demanding payment within a specified timeframe, creating a paper trail
File in Small Claims Court ($5,000 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in Missouri civil court
Enforce the Judgment
Up to 25% of disposable earnings; 10% for head of household. Bank account levies and property liens also available
Statute of Limitations in Missouri
The statute of limitations for collecting on a promissory note in Missouri is 5 years (oral), 10 years (written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | Missouri Rule |
|---|---|
| Usury Rate | 9% (default) |
| Statute of Limitations | 5 years (oral), 10 years (written) |
| Small Claims Limit | $5,000 |
| Garnishment Rules | Up to 25% of disposable earnings; 10% for head of household |
Sample Missouri Unsecured Promissory Note
Below is a preview of our Missouri-specific unsecured promissory note template.
STATE OF MISSOURI
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [Missouri Address]
BORROWER:
Name: [Borrower Name]
Address: [Missouri Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 9% (default) in MO)
This note is UNSECURED. No collateral has been pledged.
Missouri Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in Missouri.
Official Missouri Resources
Use these official resources for Missouri lending laws and court procedures.
Other Missouri Promissory Note Types
Need a different type of promissory note for Missouri?
Create Your Missouri Unsecured Promissory Note
Answer a few questions and download your Missouri-compliant unsecured note in minutes.
No account required. Free to create and preview.