This topic is in your interest, read carefully.
In a bid to make pots of money people give loans with abominable rates of interest to players they may not have ever met before. Sometimes the interest component ends up being more than the principal itself! These situations often lead to the borrower not being able to repay on time and then the borrower changes his name and goes quiet.
The person who loaned goes to Court or talks to an admin about this and we try to help. But often there is no proof of the loan being given or no date&time for a logcheck. Besides, sometimes the logs may not load properly, a level 5+ admin may not be able to check logs due to real life issues, especially if he needs to search(log checks do take time, it is an ocean of information) etc. This results in an unduly long time to find out what really happened. And after all this time taken to ascertain what happened, the player who loaned gets a maximum amount of what he gave to the borrower, interest is hardly ever allowed by courts, and never allowed by admins. Ultimately you gain nothing and you may lose your money altogether or have the money kept away from you in a court case for a few weeks atleast.
In order to avoid this hassle to both sides, instead of being money hungry and charging insane rates of interest, my advice is to avoid loaning money altogether. If you are hell bent on loaning your money, make sure that you know the player well at least for 2 months before you loan(I can already see this sentence being overlooked) the money. Besides charge an interest which is a maximum of 5 percent of the loan amount(this is a roleplay server not a virtual money making server).
I did loan money to a friend(an amount of 100k), who until yesterday had the money ready for repayment. He is known well to me, had taken 1 or 2 loans earlier, repaid within the time specified. I was not charging any interest at all, just wanted my money back and it was assured to be returned. I get instant messages from him saying that he gave 75k to some player who assured 140k in one week and then changed name to avoid being detected! The damn interest rate is at 100 percent, how can anyone be expected to pay it unless they are lucky enough to win a damn lotto or derby?! And how can you loan someone money when the money isn't yours at all!
I use my money to donate to new players who are in financial trouble or regulars who are in trouble at my discretion(meaning I am not a donation bank to give to whoever asks). I could have well used that 100k for atleast 10 new players, to give them a little hope of starting afresh, if it was returned, but as told to me the 'scammer' was banned and the admin who banned said no refund would be given(naturally, the admin is not responsible for such loans being given).
The reason why I made this topic is because I do not want anymore players falling into this trap again. 100k is not a big amount for me, but it may be for a lot of people. but rest assured I am not loaning my best mate even 10 dollars. Once bitten, twice shy they say, and I will be more shy than that. I hope you all learn from my experience. Be wise. Do not loan as far as possible.
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