[eah]

As you would imagine, this is very risky. Someone can easily get rc from you and never return. But I'm willing to take on the challenge as I've added some sophisticated rules:
- - - - - - - - - - - - - - - - - - - - - - - - - - -
0 < x ≤ 100: 10% interest each day
100 < x ≤ 200: 7.5% interest each day
200 < x ≤ 500: 5% interest each day
500 < x ≤ 1000: 2.5% interest each day
1000 < x ≤ 2000: 1% interest each day
2000 < x ≤ 5000: 0.5% interest each day
5000 < x ≤ 10000: 0.25% interest each day
For every loan there is a 100 rc fee that is not compounded.
All loans are compounded daily.
The loan can be partially paid at any time including the 100 rc fee.
The entire loan plus interest and the 100 rc fee must be paid before the loan is considered paid off.

Everyone starts with a level 1 credit rating.
To get to a higher level, you must show us that you can and will pay off your loans by simply paying off your loans!
It helps to take out larger loans and a greater number of them.
Level 1: Can make loans of at most 100 rc.
Level 2: Can make loans of at most 200 rc.
Level 3: Can make loans of at most 500 rc.
Level 4: Can make loans of at most 1000 rc.
Level 5: Can make loans of at most 2000 rc.
Level 6: Can make loans of at most 5000 rc.
Level 7: Can make loans of at most 10000 rc.
There is no ordered way we will up you credit rating. We will up it when we feel you will pay back the loans.
If a loan is NOT paid off within 30 days, your credit rating will be automatically downgraded, possibly more than 1 level.
If you do not pay back a loan at level 1, you can no longer take out loans.
You can only take out 1 loan at a time.
We may choose someone else over you with the same credit rating to make a loan to.

There are no excuses! We feel that 30 days is more than enough to pay back 15000 rc. If you feel you will not pay back the loan or you don't play mine realm often enough, don't take out the loan!
- - - - - - - - - - - - - - - - - - - - - - - - - - -
By the way, when I say "we" I mean the bank. Once the bank initially exist, "we" will be just me, the only owner, employer and employee. And as of right now, I own only one 50x50 plot and have almost 10000 rc. It would help if more people could join this central bank.

I don't know how It'll work with the 10% tax taken off every transaction. Maybe I'll just ask them to make the transaction to account for the tax (multiply by 10/9). But that'll just screw up the whole tax system. I believe its purpose is to prevent inflation. I'm not sure if the tax should apply here or not. It'd make it a whole lot simper if it wasn't.

Well, let me know how this idea looks or if you think something should be added. And please, feel free to take this into your own hands. I don't mind competition! The more banks the merrier.

[FaeynHeart]

....just from a glance (and not trying to be rude) but there are so many things wrong with this.

You had stated that if a loan had been paid off within 30 days the credit would be automatically downgraded? Yes, well they are your terms, so you can definitely do that..I don't know how much business you will get since everything is compounded daily. Do you know that at your lowest rate lets say 100rc for example, if a recipient wants to get to level 2 credit rating they must wait until the loan gets to 1,744.94 before paying it off? Of course that is assuming they make no payments to the loan until the 30 day mark.

Also, I think since mostly everyone supports the tax, you would be at a disadvantage by requiring people to pay to balance out the deficit.

As a final note, not trying to shoot down your idea, but you might want to really think things over

EDIT: sorry, I think you may have wanted to say "If your loan is not paid back within 30 days then your credit rating will be dropped".

EDIT: I would also say there is some possibility of "money trickle" which you need to be careful of. Although not following through on an agreement is bannable why is that a threat to those who can create alternate accounts? Also, in this case, you would have a hard time of finding out who the money ends up going to.

[Cogohst]

Way to run a loan buisness.
10% Hourly Compound Interest. You'll be a rich man within a week.

[Kojaimea]

Way to run a loan buisness.
10% Hourly Compound Interest. You'll be a rich man within a week.

If you can get the money back, and without PvP there isnt really much way to "Break" players legs.

[Cogohst]

Way to run a loan buisness.
10% Hourly Compound Interest. You'll be a rich man within a week.

If you can get the money back, and without PvP there isnt really much way to "Break" players legs.

Get me a red tag, and I'll have all the leg bats I need.

[eah]

Yeah, I guess I worded that wrong. If not paid within 30 days, their credit rating will be dropped. So if one on level 2 did not pay back a loan within 30 days, their rating would go to level 1.

I'm afraid of the trickle thing. You don't suppose that would be a serious issue, do you? How can one have multiply mc accounts anyway? Don't they check similar IP's or something?

Also, I don't expect anyone to pay back a loan of 100 rc on the last day. A loan of that size should be payed back within 2 or 3 days. But in case they do realize that they owe me money on the final day, they still can pay back that enormous amount of over 1500 rc. And since there is no rule saying you have to pay back a loan within a certain time period, they can pay it back even after 30 days. I chose the 30 day limit because that seems enough to pay back 10000 rc.

The original idea I had was to loan 10000 rc to those looking to purchase a realm. But problems arise when people don't pay that back. The credit rating system allows me to develop trust with loanees. Since I've added the credit rating system, players looking to buy a realm have to first build up a credit rating, making multiple loans. So, yeah. It seems that business won't be so busy.

I must say, developing a system that works is difficult!

How long would it take to pay back 100 rc? 3 days maybe? If my math is correct, that'll be 133.1 rc plus the 100 rc fee. In fact, they could make the loan and pay it back immediately afterwards without paying any interest. They would then be that much closer to level 2. A 200 rc loan paid after 3 days would be 248.46 plus 100 rc fee. A 500 rc loan paid after 4 days would be 607.75 plus 100 rc fee. A 1000 rc loan paid after 6 days would be 1159.69 plus 100 rc fee. A 2000 rc loan paid after 8 days would be whatever. and so on...

The reason I have the interest lower for larger loans is because 10% each day for a 10000 loan would be enormous after 15 days or so.

After calculating those, I think I might get rid of the 100 rc fee. And since people can easily get credits from destroying and placing blocks, that's another reason I'll get little business. I guess if I'm really gonna do this, I'll start with the prices and interest rates low and see how it goes. If I'm loosing too much, I'll have to raise them and if someone decides to create multiple accounts and rob me, I might just end business.

[eah]

Also, I said loans can be partially paid, lowering the amount that is compounded. Thus, in the long run, the loanee will have to pay less if partial payments are made rather than one whole payment in the end.

Can someone give an explanation on how minerealm deals with fractions of a credit and how the system rounds?

[eah]

Once started (if so), the place to check your credit will be somewhere on this forum. Sorry for the wall of text in my previous posts. I have trouble shortening my ideas.

[Suikadesu]

Not really implemented for multiple reasons, this looks pretty similar to the loan process for frogbank, Except only a portion of what ours will offer, Im glad to see someone else on this idea though. Not sure your methods of calculating everything, to be honest. Im not a banker. But froglenn is.. Laff so he's more in charge of figuring out everything money wise. But as for your bank acct only accuring a total of around 10,000 you might need to save up abit more. We arent open yet but we have around 100,000 RC so far. New frogtown is being recalculated though. so the bank's location, and what will happen to it is unknown at this time.

Suikadesu

[physaux]

This sounds like a very complicated way to offer minerealm loans lol. Anyways best of luck xD

How is frogtown's bank doing? I haven't heard anything about it.