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.

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.

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