To get this much needed money, he asks his friend Antonio, who is a merchant, however Antonio does not have any money for him because all of Antonio's money is invested in merchant ships. Understanding his friend, Bassanio's urgency however, Antonio arranges for a short-term money loan from Shylock.

Shylock hates Antonio because Antonio has been rude to him in the past so he makes an ugly agreement. Shylock will loan Antonio 3,000 ducats but they must be returned in three months or Shylock will take a pound of flesh from Antonio. Antonio, confident in the return of his merchant ships agrees to this date of repayment.

Now then, according to Portia's father's will, all of Portia's suitors must choose from three coffers. One of these coffers holds a portrait of her and if he chooses this one containing the portrait, he may marry her. If he chooses wrong, he must never court again.

A prince of Morocco and Arragon, and both fail. Bassanio is readying to travel to Belmont for the test to marry Portia when his friend Lorenzo, elopes with Jessica, Shylock's daughter. Jessica escapes with a large portion of her father's wealth.

Bassanio arrives in Belmont and chooses the correct coffer, and Portia agrees to marry Bassanio that same night.

However, amidst the Bassanio's happiness, Antonio's situation worsen's because two of his ships have been wrecked in transit, and his creditors, including the Shylock want repayment.

Bassanio hears about his friend's money problems and hurries back to Venice. Portia disguises herself and her maid Nerissa as a lawyer and a clerk and secretly follow Bassanio back.

By the time Bassanio arrives back in Venice, Antonio's loan is outstanding and Shylock wants his pound of flesh.

Bassanio offers more money than what was even owed because he is now wealthy after marrying his Portia, but Shylock is bent on revenge and the Duke of Venice will not intervene either way. Portia, disguised as a lawyer, defends Antonio. She declares that Shylock can have his pound of flesh as long as he does not draw any blood because that was not in the original agreement. Also because, exacting a pound of flesh would kill Antonio, Portia argues that Shylock has conspired to murder a Venetian citizen, thus forfeiting his wealth and the loan.

It is decided that half of Shylock's money will go to the city and the other half to Antonio but instead Antonio gives back his part of the money on the condition that it go to Shylock's disinherited daughter, Jessica. Antonio also wants Shylock to convert to Christianity before he returns the money. Shylock accepts.