New Hampshire Unsecured Promissory Note Overview
An unsecured promissory note in New Hampshire 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 New Hampshire is 10% (default).
10% default rate; no general usury cap for written agreements between private parties. Unsecured notes carry more risk for the lender, so interest rates are typically higher than secured notes. However, the rate must still comply with New Hampshire's usury laws.
If the borrower defaults, the lender's primary remedy is filing a lawsuit within New Hampshire's statute of limitations (3 years (oral and written)). The small claims court limit in New Hampshire is $10,000, which is ideal for smaller unsecured loans.
10% (default)
Usury rate cap
3 years
Statute of limitations
$10,000
Small claims limit
25%
Max garnishment
New Hampshire Legal Requirements
New Hampshire has specific requirements for unsecured promissory notes:
Important: New Hampshire Usury Laws
New Hampshire's maximum interest rate is 10% (default). 10% default rate; no general usury cap for written agreements between private parties. 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 New Hampshire's 10% (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 New Hampshire law as the governing jurisdiction
Collection Remedies in New Hampshire
If a borrower defaults on an unsecured promissory note in New Hampshire, 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 ($10,000 limit)
Fast, affordable, no attorney required for amounts within the limit
File a Civil Lawsuit
For amounts above small claims limits, file in New Hampshire civil court
Enforce the Judgment
Up to 25% of disposable earnings; $50/week exempt. Bank account levies and property liens also available
Statute of Limitations in New Hampshire
The statute of limitations for collecting on a promissory note in New Hampshire is 3 years (oral and written). After this period, the lender loses the right to file a lawsuit to enforce the note.
| Aspect | New Hampshire Rule |
|---|---|
| Usury Rate | 10% (default) |
| Statute of Limitations | 3 years (oral and written) |
| Small Claims Limit | $10,000 |
| Garnishment Rules | Up to 25% of disposable earnings; $50/week exempt |
Sample New Hampshire Unsecured Promissory Note
Below is a preview of our New Hampshire-specific unsecured promissory note template.
STATE OF NEW HAMPSHIRE
UNSECURED PROMISSORY NOTE
No Collateral Loan Agreement
LENDER:
Name: [Lender Name]
Address: [New Hampshire Address]
BORROWER:
Name: [Borrower Name]
Address: [New Hampshire Address]
LOAN TERMS
Principal: $[Amount]
Interest: [Rate]% per annum (max 10% (default) in NH)
This note is UNSECURED. No collateral has been pledged.
New Hampshire Unsecured Promissory Note FAQ
Answers to common questions about unsecured promissory notes and collection procedures in New Hampshire.
Official New Hampshire Resources
Use these official resources for New Hampshire lending laws and court procedures.
Other New Hampshire Promissory Note Types
Need a different type of promissory note for New Hampshire?
New Hampshire Secured Promissory Note
Collateral-backed loan agreement
New Hampshire Demand Promissory Note
Payable on demand, no fixed maturity
General Promissory Note
Standard promissory note template
New Hampshire Loan Agreement
Comprehensive loan documentation
New Hampshire Bill of Sale
Document property transfers
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