What does "interest discount" mean?

"Discount interest" is the abbreviation of "discount interest", which refers to the discount interest paid to the bank by the holder of the bill of exchange for the discount face amount applied to the bank.

Calculation method of discount interest:

Discount interest = discount amount × number of discount days × daily discount rate

Daily discount rate = monthly discount rate ÷ 30

Actual payment amount = face amount - discount interest

Interest discounts are divided into three types: housing discounts, loan discounts, and deposit discounts.

Housing subsidy: The full name is "Policy Interest Subsidy Business for Personal Housing Loans". Commercial banks issue loans. The amount of the discount is based on the loan amount that can enjoy the discount, using the provident fund loan interest rate and the commercial bank loan interest rate. The calculated interest difference is paid to the individual by the Housing Provident Fund Management Center;

Loan discount: Subsidy loan is a commercial individual housing loan issued by the Provident Fund Management Center in cooperation with the relevant commercial bank. For loans, for borrowers who meet the interest discount conditions of the Management Center, the Management Center will provide interest discounts based on the interest discount amount that the borrower can apply for and the interest rate difference between commercial personal housing loans and housing provident fund loans;

Deposit interest discounts: It is the negative deposit interest deducted based on the discount rate. For example, if you have an acceptance bill or time deposit certificate due in three months, and you need to use cash now, if you exchange it for cash, the person who accepts it will lose three dollars. If you pay monthly interest, the interest loss needs to be deducted from the cash given to you. The interest deducted is the deposit discount. What is interest subsidy?

What does interest subsidy mean?

Interest subsidy generally refers to fiscal subsidy, which means that among the interest on bank loans, the borrower is responsible for repaying part of the interest, and the government is responsible for subsidizing the other part of the interest to the bank. This part of the subsidized interest is called interest subsidy.

What does subsidized interest mean and what is subsidized loan?

Discounting is an act of converting forward payments into cash. For example, if you have an acceptance** or time deposit certificate that matures in three months, and you need cash now, you can exchange it for cash, but the person who accepts it loses three months of interest. , then the interest loss will be deducted from the cash given to you. Then, the negative deposit interest you pay is the negative interest that needs to be borne by the discount (which is equivalent to "loan interest", but there is no "loan interest" in private transactions. The concept of "loan", so I expressed it as "negative deposit interest") is called "subsidy interest". The interest discount loan is a policy-based interest discount business for personal housing guaranteed loans (hereinafter referred to as discount interest). It refers to the commercial personal housing loans issued by the housing provident fund management center in cooperation with relevant commercial banks. All borrowers who meet the center’s interest discount conditions will be provided by the center. Interest subsidies are provided based on the amount of interest discounts that borrowers can apply for. All relevant procedures for interest discount business are entrusted to commercial banks or their entrusted law firms to handle them on their behalf. Borrowers do not need to go to the loan center to apply on their own.

What does "interest discount" mean?

What are discounts and discounts? What is discount? The note holder transfers the note to the bank for cash before the note matures by paying a certain amount of interest. A form of bank lending. For the holder, discounting means selling the bill and recovering the monetary funds advanced for commercial credit in advance; for the discount company or bank, it means providing bank credit to the holder. The bank sets a discount rate based on the market interest rate and the creditworthiness of the bill, and calculates the discount interest from the discount date to the maturity date of the bill. Discount interest = face amount of the bill × discount rate × maturity period of the bill. After paying interest, the holder of the note can obtain cash from the bank equal to the balance of the face value minus the discount interest, and the ownership of the note belongs to the bank. When the bill matures, the bank will present the bill to the drawer for cash. If payment is refused, the bank can claim the money from the endorser. Bill discounting can be divided into two types: discounting and rediscounting according to different levels. Commercial banks' bill discounting business for industrial and commercial enterprises is called discounting. The central bank's rediscounting of undue industrial and commercial enterprise bills that have been discounted by commercial banks is called rediscounting or rediscounting. discount. The discount rate is formed spontaneously due to changes in market capital supply and demand, while the rediscount rate is set by the central bank. Bill discounting represents a short-term loan provided by the discount bank to holders of unmatured bills. The interest charged during the discount period is also called discount interest, and the interest rate is called the discount rate. Discount interest is the negative deposit interest deducted based on the discount rate! The term "discount deducted" is inaccurate. It should only be said "discount interest deducted". Discounting is the act of converting future payments into cash. For example, if you have an acceptance bill or time deposit certificate that matures in three months, and you need cash now, you can exchange it for cash, but the person who accepts it loses three months of interest. Then deduct the interest loss from the cash given to you. Then, the negative deposit interest you pay is the negative interest you need to bear for the discount (which is equivalent to "loan interest", but there is no "loan interest" in private transactions. " concept, so I expressed it as "negative deposit interest"), which is called "interest discount". The quote probably means that, for example, the futures price for January next year is 32 yuan per item. If you pay now, the settlement will be 31.4 yuan. This takes into account the interest loss of early payment.

Accounting for discounting interest-bearing commercial bills 1. Information: In April 1999, Company A obtained a commercial acceptance bill issued by Foreign Company B. The face amount of the bill was 100,000 yuan, and the issuance date was April 3 and July 3. On maturity, the coupon rate is 9%. Due to difficulties in capital turnover, Company A submitted the bill to the bank for discount on May 27, with the discount interest rate being 7.2%. When the bill of exchange matured, because Company B's bank deposit account balance was insufficient and unable to pay, the bank transferred the principal and interest of the commercial bill to Company A's short-term loan. 2. Requirements: Calculate the maturity value, discount interest and net discounted value of the commercial acceptance bill, and prepare the corresponding accounting entries. 3. Answer: 1. Calculate the maturity value of the commercial acceptance bill 100000×(1+9%÷12×3)=102250 (yuan) 2. Calculate the discount interest on commercial acceptance bills. The number of discount days is 40 days (5 days in May, 30 days in June, 2 days in July, plus a 3-day transfer period) 102250×7.2%÷360×40=818 (yuan) 3. Calculate the net discounted value of commercial acceptance bill 102250-818=101432 (yuan) 4. Accounting processing (1) Company A holds the bill and borrows it from the bank at a discount: bank deposit 101432, loan: note receivable 100000, financial expenses 1432 (2) Company B fails to cash it when it is due, the bank transfers the bill to company A and borrows: receivable Account - Company B 102250 Loan: short-term borrowing 102250 4. Problem-solving guidance: 1. "Discounting" means that the note holder sends the unexpired note to the bank after endorsement. After the bank accepts the note, it deducts the discount interest calculated based on the bank's discount rate from the maturity value of the note, and then pays the balance to the holder. , as a short-term loan from a bank to an enterprise. Bill discounting is essentially a form of corporate financing. 2. The number of discount days can be calculated based on the actual number of days or on the basis of the entire month. When calculating based on the actual number of days, the discount interest rate is calculated based on 360 days; when calculated based on the whole month, the discount interest rate is calculated based on 12 months. When calculating the actual number of days, the number of days is calculated according to the principle of "counting the beginning and not the end". If the acceptor is in a different place, an additional 3 days of transfer period should be added. 3. Interest-bearing commercial acceptance bills...

What does discount interest mean?

"Discount interest" is the abbreviation of "discount interest", also known as "discount". Discount interest (Discount Charges) refers to the discount interest paid to the bank by the holder of the bill to apply for the discount face value; the actual discount amount refers to the net amount of the bill amount (i.e., the discount amount) minus the discount interest payable, that is, the bill holding amount The amount of money someone actually gets after applying for discount. According to regulations, discount interest should be calculated based on the discount amount, discount days (the number of days from the date when the bank pays the discounted bill to the discount unit to the day before the bill of exchange maturity date) and the discount rate.

Edit the calculation of discount interest in this paragraph

Discount interest = discount amount × number of discount days × daily discount rate daily discount rate = monthly discount rate ÷ 30 Actual payment amount = face amount - discount interest If the acceptor is in a different place, an additional 3 days of transfer time should be added to the discount, rediscount and rediscount periods and the calculation of discount interest. Loan discount refers to small-amount guaranteed loans used for low-profit projects that are fully discounted by the municipal finance. The borrower will not pay interest during the loan period, and the interest discount shall not exceed two years. There will be no housing discount for the extension. The full name of the discount is " Policy-based interest discount business for personal housing loans.” If you are a depositor of the Beijing Housing Provident Fund Management Center system and meet the conditions for provident fund loans, you can apply for interest discounts. The loan amount that enjoys discounted interest is determined based on your monthly provident fund payment amount. When a commercial bank issues a loan to you, the interest discount amount is based on the loan amount for which you can enjoy the interest discount. The interest difference is calculated using the provident fund loan interest rate and the commercial bank loan interest rate. This difference will be paid to you personally by the Beijing Housing Provident Fund Management Center. Interest discount business is a powerful supplement to provident fund loans, so not all projects can apply for interest discounts. Please consult the developer whether you can apply for a specific housing project. Choosing interest discounts has many benefits for borrowers. First, all loan procedures are handled by lawyers, so you can avoid having to travel between provident fund management centers, appraisal firms, guarantee centers, and lending banks. Secondly, interest discounts are free of charge. The collateral needs to be evaluated to save you money; thirdly, the interest discount business is guaranteed by the Beijing Housing Loan Guarantee Center. The Guarantee Center purchases a combination of property loss insurance and personal accident insurance for borrowers in the discount business. Insurance protects your interests in all aspects; fourth, the essence of the interest discount business is a commercial loan. The disbursement speed is as fast as that of a commercial loan, and you can also enjoy the exclusive discount of the interest discount business when paying the house payment. . What does discount interest mean?

Discount interest refers to the interest paid by the holder of the bill to the bank when the holder of the bill applies to the bank for a discount. The discount interest should be calculated based on the discount amount, discount days and discount rate. The calculation formula is: discount interest = discount amount × discount days × daily discount rate.

It should be noted that subsidized interest may also refer to the interest subsidized by the state or banks in subsidized loans. Its specific meaning should be understood dialectically according to the different situations in which it occurs.

What does interest discount mean?

Interpretation of interest discount:

1. Interest is paid when a promissory note is exchanged for cash.

2. The interest paid when exchanging promissory notes for cash.

Interest discount

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Detailed explanation

Interest is paid when a promissory note is exchanged for cash. Also refers to the interest paid when a promissory note is exchanged for cash.

Sentences

1. The government supports struggling companies through subsidized loans, programs such as cash for used cars, or providing public construction projects.

2. The bank’s view on stabilizing the automobile consumer market is: “Manufacturers should consider discounting interest rates.”

3. According to the New York Times, using subsidized loans and the government to provide free land, our companies are "taking over" this exciting new growth industry.

4. Interest rate discount: The preferential interest rate is implemented, and the county Disabled Persons' Federation subsidizes the interest.

5. One of the measures is to provide loan interest discounts to dairy processing companies.