The Acknowledgement Receipt Of Borrowed Money is a crucial document in South African lending practices, used to formalize loan arrangements between parties. This document is essential when money is lent, whether in personal or business contexts, as it provides clear evidence of the debt and protects both parties' interests. It must comply with South African legislation, including the National Credit Act 34 of 2005 and the Prescribed Rate of Interest Act. The document typically includes the loan amount, repayment terms, interest rates, and parties' details. It's particularly important in situations where formal loan agreements might be considered too complex or costly, while still maintaining legal enforceability. The document can be used for both one-time loans and structured repayment arrangements, making it versatile for various lending scenarios.

1. Date and Parties: Full names, identification numbers, and addresses of both the lender and borrower

2. Acknowledgement of Debt: Clear statement of the amount borrowed and confirmation of receipt by the borrower

3. Loan Details: Specific amount borrowed, date received, and purpose of the loan if relevant

4. Repayment Terms: Payment amount, frequency, method of payment, and due date(s)

5. Interest Rate: Applicable interest rate (if any) in compliance with the Prescribed Rate of Interest Act

6. Signatures: Space for dated signatures of both parties and witnesses