Players may borrow up to 25 ducats (25d) from "the bank". The loan can either be for 1 year at 20% interest, or for 2 years at 50% interest. At the end of the (Take a Loan) borrowing phase of the indicated season of the indicated year, the full amount including interest must be paid.
Failure to repay a loan when due in full will see the player assassinated."Another loan can be taken out to pay off the first loan as long as the outstanding principal at any time is not greater than 25 ducats. Loans can be paid back early during any borrowing phase, interest first. For example, you can take out a loan of 15 ducats in Summer of 1492 for two years. By Summer of 1494 you must pay 23 ducats (interest is always rounded up), but if you only had 13 ducats in your treasury at the beginning of the Summer 1494 borrowing phase you could take out another loan of 10 ducats during that phase so that you had sufficient funds to pay off the loan.
"Careful planning must be executed to ensure that you don't default on the loan. If you are unable to pay off a loan, you suffer the same effects as assassination below and you will not be allowed to borrow from the bank for the rest of the game. In addition to borrowing ducats from the bank, players may loan ducats to other players. Loaning ducats to another player can be done during any borrowing phase and happens before the bank collects any outstanding loans due during that phase. The receiving player (and any third party) will not know whether he really received the loan until the phase is actually processed. Whether or not the player pays back these nonbinding loans is up to the individual player. A player who is in debt to the bank cannot loan money to another player before paying off that loan. Thus you cannot, as your last dying gasp, borrow 25 ducats and give them to your ally." -- Doug Massey, Machiavelli articles at the Diplomatic Pouch Zine.
Understanding borrowing Edit
"There are three kinds of intelligence: one kind understands things for itself, the other appreciates what others can understand, the third understands neither for itself nor through others. This first kind is excellent, the second good, and the third kind useless." ~ Niccolo Machiavelli
"Money Money Money Money" by Bruce Duewer (http://wwwow.diplom.org/Zine/W1999A/Duewer/moneymoney.html)
"Money... Must be Funny" by Bruce Duewer & Sergio Lidsell (http://diplom.org/Zine/W2013A/Lidsell/money.htm)
"The Power of the Purse" by Bruce Duewer (http://www.diplom.org/Zine/F2000M/Duewer/articlemach5.html)
"Money Management" by W. Narhi (http://diplom.org/Zine/S2006R/Nahri/DPSu2006A%20Money%20Management%20in%20Machiavelli.htm)
"Spending Like there's No Tomorrow" by Bruce Duewer & Sergio Lidsell (http://diplom.org/Zine/S2014R/Lidsell/spending.htm)