| No | Term | Definition |
| 1 | Discount | Interest deducted in advance from the loan. |
| 2 | Proceeds | The amount received by the borrower after bank discount is deducted from the principal amount. |
| 3 | Maturity value | The amount that is due on the maturity date of a loan. For simple discount note, the maturity value is the amount borrowed, before deducting the bank discount. |
| 4 | Simple discount note | An amount deduct from (bank discount) from the principal at the beginning of the loan period. The borrower only receives proceeds |