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Check rediscounting is a financial facility wherein post-dated checks are exchanged for cash, on-date checks or any other financial instrument that the client can use immediately. A percentage of the check/s to be rediscounted is deducted (usually 10%. the total percentage amount deducted usually depends on the maturity date of the checks) It can be availed from some financial institutions (i.e. banks) or through informal sectors. Check rediscounting may also be considered a loan, and the amount deducted may be considered interest of said loan. Repayment of said loan is through the post-dated checks issued.

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