Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

Florida Promissory Note Template (2026): Usury Limit, Interest, Notary

Updated October 11, 2026. Quick answer: 18% a year simple interest is the usury line for most loans, above 25% a year is criminal usury, and a loan over $500,000 is governed by the higher section 687.071 rate (Florida Statutes sections 687.02 and 687.071).

Florida promissory note at a glance

ItemWhat the documents say
Maximum interest rate on a private loan18% a year simple interest; for a loan over $500,000 the higher section 687.071 rate applies
Rate if the note names noneThe rate provided in section 55.03, where interest accrues without a special contract for the rate (section 55.03 itself was not read)
Penalty for charging too muchA willful violation forfeits the entire interest charged, and interest taken or paid is recoverable at double the amount, unless the lender refunds the overcharge before suit or notice (687.04); willfully and knowingly charging above 25% a year is criminal usury (a misdemeanor up to 45%, a felony above 45%)

What Florida law says about interest

Interest above the equivalent of 18 percent per annum simple interest is usurious, except that for loans over $500,000 the limit becomes the higher criminal-usury rate in s. 687.071.

Where interest accrues without a special contract for the rate, the rate is the rate provided for in section 55.03 (section 687.01); the text of section 55.03 was not read, so this page does not state that rate.

Loans above $500,000 are usurious only if the rate exceeds the s. 687.071 rate. A willful violation of the usury limit forfeits the entire interest, and where usurious interest has been taken or paid the taker forfeits double the amount to the payer, unless the lender refunds the overcharge, with interest, before suit or written notice; willfully and knowingly charging above 25 percent per annum is criminal usury.

The sources in their own words

  • Interest limit: “higher rate of interest than the equivalent of 18 percent per annum” (Florida Statutes 687.02 Usurious contracts defined).
  • Exemption or penalty: “exceeds $500,000 in amount or value” (Florida Statutes 687.02 Usurious contracts defined).
  • Exemption or penalty: “shall forfeit the entire interest so charged” (Florida Statutes 687.04 Penalty for usury).
  • Interest limit: “exceeding 25 percent per annum” (Florida Statutes 687.071 Criminal usury, loan sharking).
  • Rate when none is agreed: “the rate is the rate provided for in s. 55.03” (Florida Statutes 687.01 Rate of interest in absence of contract).
  • Time limit to sue: “founded on a written instrument” (Florida Statutes 95.11 Limitations other than for the recovery of real property).

If you’re ready to put it in writing

This is free to browse and there is no obligation to buy anything. LawDepot builds a state-specific promissory note through a question-and-answer form.

Build a promissory note at LawDepot

LawDepot pays us a commission if you buy through this link. It costs you nothing extra. We are not a law firm and this is not legal advice. Affiliate Disclosure.

Signing the note: signature, witness, notary

Florida’s UCC defines a promise as a written undertaking to pay money signed by the person undertaking to pay. A note is signed by the person who promises to pay.

None of the sections read for Florida requires a witness or a notary for the note itself. A note secured by real property is a separate question; see what an intra-family mortgage requires.

How long a lender has to sue

An action on a contract or obligation founded on a written instrument must be brought within five years; Florida’s UCC 673.1181 defers to Chapter 95 for notes.

A worked example: a $25,000 note

Suppose a relative lends you $25,000 and you sign a note for 7 years at 7% a year, paid monthly. With r = 7%/12 and n = 84 months, the level payment is principal times r divided by (1 minus (1 + r) to the power of negative n): $377.32 a month, computed here from these assumed inputs, not quoted. Over the 84 payments that is $31,694.88 in total, of which $6,694.88 is interest.

The 7% rate sits inside the Florida limit in the table above, which is why it was chosen. The federal side of a loan between relatives is covered at family loan minimum interest rate and AFR rates by month.

A loan or a gift?

A loan that may never be repaid is taxed differently; see family loan vs gift, forgiving a family loan and gift tax by state.

What the documents do not say

  • The rate provided for in section 55.03 is not stated on this page, so no percentage is given for a note that names no rate.
  • Silence on a witness or notary in the sections read is not proof that no other Florida law requires one.

Common mistakes

  • Charging more than the limit in Florida, which the table gives as 18% simple interest (above 25% is criminal), can mean forfeiting the entire interest if the violation is willful, plus double the interest taken or paid, unless the lender refunds the overcharge, with interest, before the borrower sues or gives written notice.
  • Leaving the rate out: this page cannot give Florida’s default rate, so write the rate down.
  • Waiting too long to enforce: Florida allows 5 years to sue on a written note.

Related: promissory notes by state, promissory note requirements, family loan minimum interest rate, and gift tax by state.

Sources

Sources: the primary documents linked above, read on October 11, 2026. General information, not legal or tax advice. Statutes change and courts read them, so confirm anything consequential with a lawyer licensed in your state.

See the document option on this page