Loans for Newcomers Guide

[sXs]

Awesome guide. I tried to stay away from taking loans as much as possible. May rethink my strategy a bit now.

Total Loans signed: 15
Total Gold Coins Received: 51,650,000
Total Gold Coins paid back: 54,461,542

seems insignificant in comparison i guess.

[Bmw]

when i started off i ended up in a guild that as early as i was just dumped truck loads of gold on me but since then ive refrained to taking loans whenever possible until i got into the little spurt with avery and dos and I took 60mill in loans or more (cant really remember all that well) and was managing to payback the loans with just a small trickle of gold a day.

[Black sparrow]

I added a simple 7 step guide on top of the guide for clueless people.

[Rjcook]

great guide ..also good for new bankers also...

[Haron]

So, if you take a 1M loan with 20% annual interest, and pay it down over 90 days, you actually have to pay back over 1.3M? That doesn't sound good...

[Valar Morghulis]

The Night's chest usually grants mortgages to newcomers on very favourable terms.

Limit may be below three weeks in the game. Mortgages up to 200k gold will be 1,5% interest and delay at 2,5%. Else, standard rate (9%/18% may apply)

[Sir Henry Morgan]

So, if you take a 1M loan with 20% annual interest, and pay it down over 90 days, you actually have to pay back over 1.3M? That doesn't sound good...

2 trade galleon fleets can be built for just under 1 million gold coins. Put them to fishing for 90 days - say they make 21,000 gold coins each per day. That be just over 3.7 million income.

Loan paid with almost 2.5 million left over. Plus 10 ships in your armada all with no swag of your own.

Sounds good to me....

[Haron]

I'm not saying you shouldn't take the deal. I just find the maths involved a bit strange.

20% of 1M is 200k. 90 days is around 1/4 of a year. So even by keeping the loan and paying back everything after 90 days, the total interests should only be 50k. So why do you have to pay over 300k? That's an effective annual interest rate of over 120%.

[DezNutz]

So, if you take a 1M loan with 20% annual interest, and pay it down over 90 days, you actually have to pay back over 1.3M? That doesn't sound good...

Interest rates in Avonmora are monthly not annual and are compounded daily.

[Haron]

Then I guess the numbers match better. The guide said annual interest rate, which is why I was confused.

Anyway, an alternative to taking loans is to contact your nearest Naval Combat Solutions Provider. I'm sure they can fix a nice deal for you.