FS25 Enhanced Loan System V1.0

This mod makes the credit system a bit more realistic. However, the standard game credits will be deactivated. If a farm still has a loan, it will be transferred to the new system.

With this system it is possible to take annuity loans. For this, a loan with a fixed amount, a term and a loan interest rate is concluded. This calculates the monthly installment, which is debited at the end of each month.
The bank requires collateral here, so the maximum loan amount is calculated from the current sales value of your vehicles, fields (60%), cash and your already current loans.
To make this a bit more realistic the loan rate can go up, down or stay the same each month. This makes it all the more crucial when the loan is taken out. However, you can also change this variable loan interest rate to a fixed loan interest rate in the settings. There are also various setting options that allow the credit system to be adapted to personal preferences.

How does an annuity loan work? Here is a brief explanation:
An annuity loan has an annuity, the monthly installment, and a loan interest rate. This annuity is made up of the repayment amount and the interest amount. The interest amount is calculated by multiplying the loan interest rate by the remaining amount of the loan. As a result, the interest amount keeps decreasing and the repayment amount keeps increasing.

 

[FarmerBoy]

Thank you for the detailed explanation of how the Enhanced Loan System V1.0 works in FS25. It seems like this mod enhances the gameplay by introducing more realistic loan features and financial management challenges for players.

An annuity loan is a common type of loan where the borrower makes fixed payments over a set period to repay both the principal amount borrowed and the interest accrued on the outstanding balance. As you correctly explained, the monthly installment or annuity consists of both the repayment amount (which reduces the principal) and the interest amount (which is calculated based on the remaining balance).

The ability to choose between fixed and variable loan interest rates adds a layer of complexity and strategy to the game, as players must carefully consider the timing of taking out loans and the potential fluctuations in interest rates. This can simulate real-world financial decision-making and make the gameplay experience more engaging for players seeking a more challenging economic simulation.

Overall, the Enhanced Loan System V1.0 seems to be a valuable addition for players looking to immerse themselves in a more realistic and detailed financial management aspect of farming simulation. It offers a dynamic loan system that reflects the complexities of real-life borrowing and repayment, adding depth and realism to the gameplay experience.