Loan Interest Rates

[Lloyien]

Maybe it's just me, but the 82%+ for a 5-week loan of $100,000 seems just a tad unreasonable. I can understand bumping rates up (I was already at $300,000 debt), but my income is rock solid and the financial viability of my company doesn't seem to be under any threat.

I don't think this is a bug, I should note, but will there be an option with the coming modding tools, perhaps, to adjust rates so that they increase at a slower, more even pace? Otherwise, I find myself sitting around, tweaking ticket prices and waiting on the 3x speed for the rates to drop back down to a slightly more reasonable 20%. Which also seems a bit high, to be honest.

 

[xenon5]

Personally I think the loans actually aren't harsh enough, ie maybe there should be some kind of limits on how many you can take out and the terms as well, like in cim 1. Or perhaps the interest should be compounded daily rather than weekly, that way a 10% daily loan is about equivalent to a 70% weekly loan. Right now I can take out a 50% loan to build a new metro line, but the connectivity of the new line makes so much money that the principal + interest servicing costs are actually lower than the money I make from my ticket inspectors alone!

 

[Lateralus]

Regarding interest, what is the actual payment rate, I don't get it:

Very first campaign after the tutorial, paused right at the start

- $100,000 loan
- 32,69% interest rate
- 10 weeks repayment time

- Weekly payment: $10,349

Wouldn't that mean I pay only $3,490 interest on a $100,000 loan?
Isn't that more like a 3,5% interest rate (certainly not >30%)?! What am I missing?

 

[Alex_brunius]

Regarding interest, what is the actual payment rate, I don't get it:

Very first campaign after the tutorial, paused right at the start

- $100,000 loan
- 32,69% interest rate
- 10 weeks repayment time

- Weekly payment: $10,349

Wouldn't that mean I pay only $3,490 interest on a $100,000 loan?
Isn't that more like a 3,5% interest rate (certainly not >30%)?! What am I missing?

Not really, since you pay back money at a linear rate you are on average owing them only $50000 (after 9 weeks it's not much left of your debt to pay interest on).

And interest is yearly. 10/52 = 0.1923 means you interest over the loan period will not actually be 32,69% but 6.29%

$50000 * 0.0629 = $3145

The slight discrepancy can depend on different roundings or perhaps the CiM year does not contain 364 days (52 weeks).

Maybe it's just me, but the 82%+ for a 5-week loan of $100,000 seems just a tad unreasonable.

As said above, the interest is yearly, so your not actually paying 82% extra, look at your "weekly payment" cost instead of the rates.