Bank loans on which interest is paid up front in advance are called:

Name: Bank loans on which interest is paid up front in advance are called:
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Discount loans are bank loans in which the interest is calculated and deducted from the amount borrowed at the beginning of the loan. This means that the borrower receives less than the face amount of the loan, but the interest is paid up front in advance. This type of loan is also referred to as a "prepaid interest loan."

Bank Loans on Which Interest Is Paid Up Front in Advance