Document background
The Promissory Note With Personal Guarantee is commonly used in Singapore when parties require a formal documented promise of payment with additional security. This instrument combines the straightforward nature of a promissory note with the added protection of a personal guarantee, making it particularly useful for business loans, private lending arrangements, and commercial transactions. Under Singapore law, it creates two layers of security: the maker's primary obligation to pay and the guarantor's commitment to fulfill the obligation if the maker defaults. The document typically includes specific payment terms, interest rates, default provisions, and the scope of the guarantee.
