However, for loans provided by banks, especially when interest is calculated by discount method, although the operation mode is to deduct interest from the principal in advance, this practice has its legitimacy and practice in some specific financial businesses (such as bill discount). The key is that such operations need to comply with the provisions of financial supervision and the contractual agreement between the two parties, and ensure transparency and fairness.
In short, if the discount method is applied to legal financial products and the corresponding laws, regulations and regulatory requirements are followed, it may not directly violate the Civil Code. However, in practice, financial institutions need to be careful to ensure that the interest deduction method does not violate the basic principles of the Civil Code on the pre-deduction of loan interest, or to implement such loan arrangements through a legal framework. Therefore, the specific situation needs to be judged according to detailed legal provisions and case analysis.