How to question... Loan Shark strategy

[unmerged(1047)]

I've seen mention before of a strategy of making money by turning one's country into a giant bank, issuing loans to other countries and profiting from the interest.

How viable is this sort of strategy (assuming one has a decently sized country to back it up, such as a pre-colonial France or England) and how exactly do you go about it? (I've never successfully offered a loan to an AI except my own allies, and then only at 1% interest rates.)

 

[unmerged(6147)]

I don't think it is viable. I used this feature in Dec 2001-Jan 2002 and then it was super. But too easy money. I believe Johan changed the algorithm a little bit later making it much more rare for the AI to accept the loan. And anyway, just too easy money. I never loaned any money after that.

Then lately there has been changes in the loan algorithm. Apparently the AI now accepts loans much more often. However, they refuse to pay back much, much more often as well. This almost never happened back in 2001. But now it is perhaps a 30-40-50% chance they refuse to pay it back. Perhaps Johan earlier had some kind of algorithm that made the AI save up money for the date when it was time to pay back but this algorithm has now been deleted. Thus the AI pays back if he can but refuses if he can not.
Or it was perhaps swapped for a new one where relations/vassalship/alliance/strength etc plays a role in determining if the AI nation pays back or not.

But the increased chance of a refusal has resulted in the option of using the loans as a mean to get a CB. For me this is the true contents of this feature. It's main characteristic is yet again to be an exploit, although another kind of exploit.

 

[The Andy-Man]

I used to use it too, and it is a very good strategy that isn't that cheaty of exploitative, it depends how you look at it.

I forgot how to work it though,m and have had no success recently

 

[ulmont]

the increased chance of a refusal has resulted in the option of using the loans as a mean to get a CB.

What is the sweet spot (amount, timing, interest) to get a loan accepted and then not paid back?

-Richard Campbell.

 

[unmerged(1047)]

Well, deliberately using it to get CB's would be an exploit in my opinion (though making use of an accidental one wouldn't be).

What I had intended, though, was to make additional money via successful loans, even if for only a short time - I like to play a strategy of unifying modern borders and then going colonial, when I play one of the four main Western European powers. However, with France and England I've found that I can accomplish unification far before I have access to colonies, which leaves me a chunk of time in the late 1400's where I'm not doing much but research and improving my economy. I figutred a successful banking strategy could enhance my results during that short timeframe (around, say, 1470-1520).

Apparently, though, it's far more difficult than I thought it would be. I have (since my first post) succeeded in a few 1% and 2% loans to non-allies, but only when they are at war, and then I'm only getting about 3/4ths paid back... which means I'm not making a profit.

My guess is that in previous patches this strategy was so successful that it's been down-tweeked to the point that it's now no longer viable.

 

[unmerged(36024)]

I can accomplish unification far before I have access to colonies, which leaves me a chunk of time in the late 1400's where I'm not doing much but research and improving my economy. I figutred a successful banking strategy could enhance my results during that short timeframe (around, say, 1470-1520).

You can use this strategy in 1.05, but not in 1.08. Now countries just not accept your loan offer, which is profitable for you.

And in 50 years you can build 15-20 refineries
It will make you Uber-rich later

 

[unmerged(1047)]

assuming of course that you have 15-20 provinces....