Loan

Players can borrow loans from the server or other players.

Server loans

The server can define some loan plans in the config file. Each loan plan will have its particular value, interest and requirements, and the player can choose which ones to borrow.

Let's say you want to provide two loans, one "quick loan" that the player must return very shortly and one "long loan" that the player is expected to gradually repay over time. We can define these in the config.yml:

quick loan:
  description: Need a bit quick money? This one has low initial interest, but very expensive interest afterwards!
  amount: 100
  currency: dollar
  require:
    - types:
      - [personal, quick access]
      maximum: 100
  interest:
    first: 0.05 1h
    after: simple 0.1 10min # simple vs compound
  minimum-repay: 0.8 1h
long loan:
  description: Lets you borrow a large amount at a low interest in the long term.
  amount: 10000
  currrency: dollar
  require:
    - types:
      - personal
      - [personal, loan]
      minimum: 10000
    - types:
      - [personal, loan]
      maximum: 5000
  interest: 0.05 1d
  minimum-repay: 0.1 1d

When the player has no cash in hand, the "quick loan" will allow the player to get some quick money to spend! It gives the player 100 dollars, but the player is only allowed to get it if he has less than 100 dollars of quickly-accessible money.

The interest is 5% for the first hour, but if you can't repay it in the first hour, it compounds by 10% every 10 minutes! So it accumulates to 86% interest in 2 hours, 230% in 3 hours, and 9.3 times interest in 5 hours!

As for the long loan, it gives the player $10000, but the player has to have at least $10000 beforehand, excluding those from personal loans. In addition, the player must not have more than $5000 prior loan. This time, the interest is 5% per day, so it only accumulates to 4.32 times even after 30 days without repaying the loan.

Player loans

Players can lend loans to other players. The loan works through the following process:

• Alice wants to borrow $10000 from Bob
• Bob uses the /loan lend command to open the lend loan dialog.
• Bob edits the settings on the lend loan dialog, including principal ($10000), return cycles (daily, weekly, fortnightly, monthly), interest rate (may be limited by permissions), minimum repay, mortgage, etc.
• Bob clicks the submit button, then chooses the target debtor (Alice).
• Alice receives a dialog showing the "loan contract" that Bob just drafted, and decides to "Accept" or "Reject".
  • "Accept" will require double confirmation.
  • "Reject" will show the options "Negotiate", "Report spam" and "Reject".

Minimum repay, mortgage and bankruptcy

To prevent debtors from indefinitely accumulating the loan or forgetting to repay, loans have a regular minimum repay. The server makes sure the debtor returns at least part of the loan throughout the period. If he doesn't do so manually, the server will try to automatically repay for him using some combination of the following methods (can be edited in the config):

• Withdraw money from a selected loan repayment account
• Withdraw money from his personal accounts as possible (may involve "administrative fees")
• Sell items in his inventory to the nearest pawn shops
• Sell his properties (e.g. plots)

If all of these methods fail to fund the minimum repay, the mortgage will be transferred to the creditor. If there is no mortgage, staff will be notified, and they may decide to take action as appropriate, including selling items from chests known to be owned by him, making his friends help him repay, ban him, etc.

The mortgage is determined when the loan was created. Types of mortgage include money in another currency, items in the inventory, land, and can be integrated with other plugins, such as ranks.