Difference Between Interest Rate and Discount Rate
The terms Interest rate and Discount rate are both confusing as both are the charging rates. Most of the people misunderstood it as the same term. The Discount rate is the interest rate that the central bank gives to the commercial bank. The minimum interest rate offered is by the central bank.
And Interest rate here is the money or some other service that the lender gives to the borrower for that the lender charges some percentage of that money yearly or monthly as the interest rate.