Simple Deed of Acknowledgement of Debt

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About this document

It is always very important that when lending a reasonable amount of money to someone, to avoid any problems such as the Borrower not acknowledging that they are required to repay the loan, or you and the Borrower falling out because the Borrower has some dispute with you regarding repayment, that you have this Simple Deed of Acknowledgement of Debt drawn up and signed by both yourself and the Borrower. This means that all the terms and conditions of you lending the money are all written down and agreed to by the Borrower.

This is a perfect document to have drawn up and signed in situations such as:
1. You are lending money of no more than $10,000.00 (If you are lending more, then we recommend that you purchase our Detailed Deed of Acknowledgement of Debt); and
2. You are lending to a close friend or family member; and
3. You are confident that they will be able to repay the amount that has been lent to them.
If you are lending a sizeable amount of money and you will be charging interest, default interest, wanting the option to include a Guarantor and you require more terms and conditions than those required when lending money to a friend or family, then we recommend that you purchase our Detailed Deed of Acknowledgement of Debt.

What this Document provides:

1. Security to you as the Lender that your Loan is recorded in writing and contains sufficient terms and conditions to ensure repayment to yourself; and
2. Full details of the loan and conditions associated to the loan, so that the Borrower can never dispute the terms and conditions of the loan being repaid to yourself.
3. If sadly for some reason the Borrower does not comply with the terms and conditions of your loan and/or fails to repay, then you can rely upon this document to lodge a claim against the Borrower in the Disputes Tribunal.

 This Before you begin

Before getting started, you will need the following information:
1.  The full name/s of the Borrower/s;
2.  The Address/Addresses of the Borrower/s;
3.  The exact Amount of money that is being lent;
4.  If Interest is being charged on the Loan, the interest rate; the total interest that will be paid to you by the Borrower on completion of the Term of the Loan and when and how the interest is to be paid to you;
5.  The Default Interest rate that you want to be entitled to charge, should the Borrower default in repayment, or breaches one or more of the terms of this Document.
6.  The Term of the Loan (i.e. how long the Borrower has to complete repayment in full of both the Principal Sum and, if charged, the interest);
7.  How the Loan is to be repaid; i.e. by weekly/fortnightly/monthly instalments of both the Principal Sum and the Interest (if charged), or in one lump sum at the end of the Term of the Loan.
8.  Whether the Borrower is entitled to repay the entire Loan or larger instalments of the Loan before the Loan is required to be repaid in full.

Interview time

You should be able to complete the interview and have your document within 10 – 15 minutes.

Document length

Approximately 2-4 pages long.

Document type


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Please note: if you want professional assurance that this template and your interpretation of it is appropriate to your particular situation, we recommend that you consult with a lawyer authorised to practice law in your jurisdiction.