discount interest


A unique loan situation where an interest rate is determined, and then that percentage is removed from the loan amount, and the borrower is given the remainder of the loan. All of the interest is paid at once, at the beginning. For example, in a discount interest scenario, if a borrower is borrowing $1000 with 5% interest rate, $50 in interest is removed at the very beginning, and the borrower is able to borrow $950.

Use discount interest in a sentence

You should try and figure out a way to get some discount interest so that you can save some money.

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If you have enough money on hand to cover the extra cost, a discount interest will take away the cost of interest on your product or finance.

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Because Adam has a poor credit score, he qualified only for a loan with discount interest and he was forced to pay all interest at the time when he borrowed the loan.

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