What is the meaning of nominal interest rate?

nominal interest rate is the stated interest rate in a note or contract, which may differ from the true or effective interest rate, especially if the lender discounts the loan and advances less than the full amount. (See effective interest rate).

3
 
|15 years ago|261 views|share |citing 
APABarry Goldsmith. (2010). nominal interest rate. Retrieved September 23, 2026, from http://smartdefine.org/nominal_interest_rate/definitions/1159154
ChicagoBarry Goldsmith. 2010. "nominal interest rate" http://smartdefine.org/nominal_interest_rate/definitions/1159154 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, nominal interest rate, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/nominal_interest_rate/definitions/1159154>.
MLABarry Goldsmith. "nominal interest rate" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/nominal_interest_rate/definitions/1159154>