What document does a borrower sign to indicate the loan will be paid on or before a specified date?

The document that a borrower signs to indicate their commitment to repay a loan on or before a specified date is a promissory note. This legal instrument serves as a detailed acknowledgment of a debt, including the terms of repayment, such as the interest rate, payment schedule, and the due date for the total loan amount. It is particularly crucial because it establishes the borrower's promise to repay and serves as evidence of the loan terms, protecting the lender’s interests in the transaction.

Unlike a promissory deed, which typically pertains to property transactions, or a loan agreement, which may encompass a broader set of terms including conditions and obligations beyond just the repayment of the loan, the promissory note focuses specifically on the borrower's pledge to repay the loan. A credit statement, on the other hand, generally summarizes the account's status, including outstanding balances and payment history, but does not represent a formal promise to repay a specific loan.