Bank-discount meaning

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.
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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.

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