What will happen when a bank gives discount interest on loan

What will happen when a bank gives discount interest on a loan?

E

Expert

Verified

When a bank charges discount interest on a loan the required interest payment is subtracted from the loan proceeds at the time the loan is made.  This makes the effective interest rate greater than the stated rate.

   Related Questions in Financial Management

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.