System Mechanics: Borrowing and Lending:

Some individuals may lend items or funds to other characters without any expectation of receiving them back, whereas others might want not only equal but greater value in return.  Typically, a lending process between two individuals in MaL that is not between a bank and a character is informal and laidback, perhaps having an expected time for a return, but no serious penalties if the deadline is passed by a bit.  This does not apply to all character lending processes though.  As stated before, banks are different, but so are pawnbrokers, loan sharks, and miserly individuals.

Collateral Market Value + 25% + ((Favor + Renown + Charisma - Infamy)/10) % = Loan Amount Max.

(Collateral Market Value * 0.65) +  ((Favor + Renown + Charisma - Infamy)/10) % = Pawn Loan Amount Max.

(10% - ((Favor + Renown + Charisma - Infamy)/10)%) * (Length of Time in days for Local Year / Length of Time in days to repay)   = Standard Interest

Standard Interest + Infamy = Aggressive Interest from Loan Sharks.

Loan Amount * Interest = Return needed to receive collateral back and not face penalties.

Banks will lend funds at a specific amount in order to get more in return later or be able to seize assets to make up their loss, whereas pawnbrokers already have the pawned item to be able to sell if an individual does not repay, and as such will typically not give the market value of the collateral for the loan even, instead lower so that they may still make a profit if an individual doesn't bring back the return.  Neither a bank nor a pawnbroker may legally threaten or injure a borrower in order to get their money back unless local law permits.  Usually it does not, and officers of the law will assist banks and pawnbrokers in getting their return back.  Loan Sharks on the other hand, do not care about working within the law typically, and as such will do whatever they need in order to make their return back, or if unable, to make an example of the borrower so that other individuals do not try to do the same.  Players may open banks, pawnshops or become loan sharks as well within the system, but must either fall within local laws or face the consequences.