Loan reworking

[Pontifex Maximus]

You can only take one loan per year. For each loan taken out in subsequent years, a roll will be done to determine whether or not if will be granted taking the following factors into account:

-outstanding loan amounts
-whether or not a previous loan has been timely repaid
-whether or not any outstanding loans have been defaulted on, paid back early, paid back in time

Loans are expected to be paid after a cut-off point often in-game years. The maximum is ten years. As a general rule of thumb, characters should plan to pay the interest every year and 10% of the principal sum back. If this date comes and passes and the debts have not been paid, the party must default. If you default, and if the king/parliament does not bar the usurers, then you will be forced (you can of course resort to violence) to mortgage off all your lordships and assets to either the King or other peers until you have either paid off your debts or you have nothing left to give. If the king/parliament restrains the usurers, the faction (king or parliament)will face opposition in all other matters from the commons for a few years.

The local banks and usurers in England will offer thesebasic loans & rates under normal circumstances:

£200 w/ 15% interest rate per annum
£500 w/ 15% interest rate per annum
£1000 w/ 15% interest rate per annum
£2000 w/ 15% interest rate per annum
£5000 w/ 15% interest rate per annum
£10,000 w/ 15% interest rate per annum

Parties who owe total interest rates per year which amount to more than 100% of their yearly income will usually be barred from acquiring more loans. Even the king.

Consequences

1. If yearly interest is at 100% or more of yearly income, all militia/levy rolls are reduced by -2
2. If yearly interest is at 200% or more of yearly income, all militia/levy rolls are reduced by -4
3. If yearly interest is at 300% or more of yearly income, all militia/levy rolls are reduced by -2
4. If yearly interest is at 400% or more of yearly income, all militia/levy rolls are reduced by -6
5. If yearly interest is at 500% or more of yearly income, all militia/levy rolls are reduced by -8


YWhen in default you may mortgage off lordships and assets (ie,provinces or castles) in your possession to other player characters to repay the debt, with a base value of 200% of their yearly income.

The King can at any time, with parliamentary consent, declare debts void forany individual. However, if he does so for himself or for more than a couple large magnates, at moderator discretion, the banks will completely bar off future loans from the whole of England and diplomatic relations abroad will deteriorate greatly.

Furthermore, the commons (in parliament) will by large majority oppose any and all proposals made or seen to be led/proposed by individuals with outstanding debt (like 10x your yearly income or more), especially the king.

If the king (ie, the royal treasury) falls into outstanding debt, he will lose all legitimacy and will lose any partiality the militias and levies have for him and will suffer the same penalties as mentioned above.

Lastly, during wartimes, attempts to take out loans by lords seen to be on the losing side of a fight (either against the king or the king has lost his seatand more than half of England is against him) will be usually denied; these mena re, after all, not seen as a safe investment by the moneylenders, as there is no guarantee the debts will be repaid.

It shouldn’t have to be said, but these rules are not absolute (if you don’t want to make any effort, they are) - creative or clever ways around these rulesthat are substantiated by relevant medieval history will likely be rewarded.

How to take out a loan:
- Post your patriarch's total income for this year, unmodified from buildings/traits
- Post any previous debts along with the years they were taken out, their rates, and the accumulated total debt that amounts from all debts + interest
- If your total debt exceeds 200% of the income you posted, then you will be barred from getting further loans without an RP effort to get around it
- If not, post the loan you take out from the loans available to you listed above
- Lastly, you must state the reason you are taking out this loan - it can be a fake reason, of course, as it is what your character says when the usurers ask him what the venture is.

[Lord William]

I agree on the time limit to pay debts but 10 years is too short perhaps 20 years.

I would also like to add the ability to pay debts in instalments, instead of paying a lump sum

Year 1:
debt £1000 on 15% interest
year 2:
debt 1150 on 15% interest, -£500 (payment on loan)
year 3:
£747.5 on 15% interest, -£500 (payment on loan)

anyways you get the idea

[Pontifex Maximus]

1. increasing the term to 20 years does nothing but ensure that taking out a loan realistically means you never have to pay it back

2. You can repay the loan in whatever amount you want that is higher than the requirement, the rules indicate a minimum amount that must be paid every year.

[Lord William]

Believe me nobody wants to await 20 years to pay debts when interest is 15%, it's ridiculously high. But 20 years is more reasonable, so people can have the ability to pay in smaller instalments if needed.

[Pontifex Maximus]

All that shows is a fundamental misunderstanding of why bankers give loans and how debt/interest works in the first place. You're not renting a lump sum of money for the cost of an annual interest payment.