Non-financial institutions, enterprises or units or economic organizations that meet the discount conditions apply to banks and finance companies for direct discount, and the lower limit of the direct discount rate shall not be lower than the current rediscount rate of the People's Bank of China.

That is, before the bill expires, the holder should cash it directly to the bank or finance company in advance. Cash is equal to deducting interest from face value, and the interest rate paid is called direct interest rate. Direct interest rate is the interest rate between customers and banks and finance companies.

Extended data:

The interest rate of bill business handled by the bill business department has been marketized, and the direct interest rate, like other interest rates, is mainly based on the following points:

1, according to the rediscount rate stipulated by the central bank.

2, according to the same level of liquidity loan interest rate.

3. According to the recent interbank lending market interest rate.

4. According to the interest rate in the local bill market.

5. According to the customer's contribution.

References:

Baidu encyclopedia-bill direct interest rate