What size loan?

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Lesser Spotted Mongoose
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What size loan?

Postby JMISBEST » Sat Jun 09, 2018 5:30 am

Roughly what size loan could A Noble Pc that I've rolled up as A Major Npc get on his Hunting Estate worth Cr 335,280,000 that earns him no more and no less then Cr 1,676,400 per month before costs and a minimum of Cr 1,044,573 per month after all costs?
Cosmic Mongoose
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Re: What size loan?

Postby ShawnDriscoll » Sat Jun 09, 2018 6:11 am

Whatever the plot will bear.
Banded Mongoose
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Re: What size loan?

Postby DickTurpin » Sat Jun 09, 2018 6:37 am

If he is putting the estate up as collateral, he could get a loan up to 80% of its value (MCr. 268). In reality, the income from the estate is far too low to make the payments on such a large loan unless the noble has significant additional income.

The actual amount of the loan will vary widely depending on the interest rate and the length of the loan. For example a two year loan at 3% interest would max out at about MCr. 24, while a 30 year loan at the same interest rate could be up to MCr. 245. On the other extreme a 30 year loan at 20% would top out at MCr. 62. These estimates assume that the interest compounds monthly and the estate must support the repayment without additional income.

What I suggest you do is find a loan calculator online, decide what the interest rate will be, and then play around with the numbers to see what you get.

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