bank discountbank discount
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.
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
The interest on a loan computed in advance and deducted at the time the loan is made.