In the 14th century, the city of Venice in Italy was one of the richest in all over the world. Among the wealthiest of its merchants was Antonio. He was a kind and generous person. Bassanio, a young Venetian, of noble rank but having squandered his estate, wishes to travel to Belmont to woo the beautiful and wealthy heiress Portia. He approaches his friend Antonio, who has previously and frequently bailed him out, for three thousand ducats needed to subsidies his travelling expenditures as a suitor for three months.
Antonio agrees, but he is cash-poor; his ships and merchandise are busy at sea. He promises to cover a bond if Bassanio can find a lender, so Bassanio turns to the Jewish moneylender Shylock and names Antonio as the loan’s guarantor.
Shylock hates Antonio because of his anti-Semitism, shown when he insulted and spat on Shylock for being a Jew. Additionally, Antonio undermines Shylock's money lending business by lending money at zero interest. Shylock proposes a condition for the loan: if Antonio is unable to repay it at the specified date, he may take a pound of Antonio's flesh. Bassanio does not want Antonio to accept such a risky condition; Antonio is surprised by what he sees as the moneylender's generosity, and he signs the contract. With money at hand, Bassanio leaves for Belmont with his friend Gratian, who has asked to accompany him. Gratiano is a likeable young man, but is often flippant, overly talkative, and tactless. Bassanio warns his companion to exercise self-control, and the two leave for Belmont and Portia.
Meanwhile in Belmont, Portia is awash with suitors. Her father has left a will stipulating each of her suitors must choose correctly from one of three caskets – one each of gold, silver, and lead. If he chooses the right casket, he gets Portia; if he loses, he must go away and never trouble her or any other woman again with a proposal of marriage.