- The definition of bank discount means the interest on a loan that is removed from the loan amount at the point that loan is made.
An example of a bank discount is the interest portion of a student loan that is built into the total loan amount.
bank discount definition by Webster's New World
Webster's New World College Dictionary Copyright © 2010 by Wiley Publishing, Inc., Cleveland, Ohio. Used by arrangement with John Wiley & Sons, Inc.
interest deducted in a lump sum by a bank from a loan when the loan is made: it is computed from the date of the loan to the date of the final payment on the basis of the original amount of the loan
bank discount definition by American Heritage Dictionary
The interest on a loan computed in advance and deducted at the time the loan is made.