Discount method is an interest-bearing method in which banks deduct interest from the principal when granting loans to enterprises, and the borrowing enterprises repay all the principal when the loans expire. In this way, the loan amount that an enterprise can obtain is only the difference between principal and interest, so the real interest rate of the loan is higher than the nominal interest rate.
For example, if you borrow 6,543,800 yuan from a bank with an annual interest rate of 654.38+00%, the bank will only give 900,000 yuan, and the bank will deduct the interest before the loan, so the amount to be repaid at the end of the year is 6,543,800 yuan instead of 6,543,800 yuan.
Extended data
Short-term bank loan interest payment method
(1) collection method
Interest is paid to the bank when the loan is due, and most loans issued by the bank to industrial and commercial enterprises receive interest in this way.
(2) Discount method
(3) Method of raising interest rates
The interest collection method adopted by banks when issuing equal installment loans.
In the case of repayment of the loan by installments, the bank should add the interest calculated at the nominal interest rate to the loan principal to calculate the sum of the loan principal and interest, and require the enterprise to repay the sum of the principal and interest by installments during the loan period. Due to the balanced repayment by stages, the borrowing enterprise actually used only half of the loan principal on average, but paid the full interest. In this way, the real interest rate borne by the enterprise is about 1 times higher than the nominal interest rate.