Discount loan

Discount Loan
A discount loan is a loan that does not require the payment of interest or any other charges; rather, a discount loan deducts the interest and/or other charges from the face amount of the loan when it is given out.

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Discount Loan
Definition: Loan on which the interest and financing charges are deducted from the face amount when the loan is made.

DISCOUNT LOAN - a loan on which the interest and/or charges are deducted from the face amount of the lo...
DISCOUNT MORTGAGE BROKER - A mortgage broker who claims to be compensated entirely by the lender rather...

issue new paper currency ("Federal Reserve notes") for sale to member banks on demand, withdraw worn-out currency from circulation, sit in judgment on the applications of banks that wish permission to merge with each other, extend "discount loans" to ...

DISCOUNT WINDOW: The means by which the central bank (the Federal Reserve in the United States) makes discount loans to banks.

Consumer INSTALLMENT LOANS where the finance charges are computed using the add-on interest method, and discount loans, with prepaid finance charges, are loaded in the early months with interest payments that the lender cannot count as income.

In each such situation, as well as in less significant crises, the Federal Reserve has gone into action, ensuring monetary liquidity through large balances of available cash; keeping interest rates manageable by extending discount loans to ...

discount loan A loan whose interest and financing charges are subtracted from its face amount when the loan is issued. discount rate The interest rate charged to borrow directly from the Federal Reserve Bank...

See also: Banks, Face amount, Mergers, Funding, Personal finance