Antonio and Bassanio are looking to borrow three thousand ducats so that Bassanio can impress Portia who he loves dearly. Antonio decides to visit Shylock to see if he can borrow the money off him, even though they do not get on to well.
When Bassanio and Antonio first meet with Shylock we first of all see that Shylock is not fond of Antonio as he says, ‘I hate him for he is a Christian: but more, for that in low simplicity he lends out money gratis.’ Shylock is basically saying here that he hates Antonio because of his religion and also because he lends out money free (Charges no interest.) We also learn in this speech from Shylock that Antonio must not get on very well with him and how he criticizes his business and religion, ‘I will feed fat the ancient grudge I bear him. He hates our sacred nation and he rails on me, my bargains and my well-won thrift, which he calls interest: cursed on my tribe if I forgive him!’ In this part of the play our sympathy starts to grow towards Shylock because he doesn’t particularly like Antonio but decides to do his job and goes along with selling three thousand ducats to Antonio. We are surprised that Shylock actually agrees to sell Antonio Three thousand ducats at this point in the play as later on in the play he tells us how Antonio insults him, This is again where our sympathy grows even more towards Shylock as he is still going ahead with the deal and at the same time trying to be nice to Antonio but Antonio doesn’t do the same to Shylock as he says, ‘lend it not out as to thy friends, but lend it rather to thine enemy.’ Antonio here is refusing Shylock’s offer to be friends and says that he would rather be Shylock’s enemy than his friend.
Later on in the play where Shylock is speaking with Antonio and Bassanio about the money lending Antonio wishes the money to have no interest on it what so ever and says it is against the Christian religion to pay any kind of interest at all. Shylock agrees to this bond and says that he will lend Antonio three thousand ducats free of interest hoping that Antonio will stop insulting him and humiliating him in public and this is where our sympathy for Shylock is at its highest as he is actually loosing out on business here and would rather be friends with Antonio, you could say that Shylock is actually buying his friendship with Antonio here, to prevent being insulted and humiliated in public because of his religion.
Towards the end of the Act 1 Shylock makes a bond (deal) with Antonio and tells him that if he does not return the three thousand ducats within three months then he will be entitled to a pound of flesh off Antonio’s body where ever he pleases, ‘let the forfeit be nominated for an equal pound of your fair flesh, to be cut off your body pleaseth me.’ Antonio seals to this bond (deal) and Bassanio tells him not to. Antonio ignores him and seals the bond for an equal pound of his flesh, even though he is not certain he can return the money.
Overall in Act 1 we get a very positive impression of Shylock as he does his best to do the best deal for Antonio and hopes that he will be friends with him and stop humiliating him in public. As we know this does not happen.