What is Discounted loan?

The discounted loan is given out in special circumstances. For example if your applying for a loan at your local bank and the creditor decides to give you this special off because you meet the criteria’s then you might get your loan with lower interest rates for a predefined time. The lender might offer you the loan with the interest rate 1% less for the first three years. After the three years are up then the interest rate would go back to the typical APR rate. But don’t forget that the discounted rate might also change because of the base rate fluctuations but your interest rate will be still 1% lower then the lenders standard rate.