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Business Definition for: subprime loan

Dictionary of Banking Terms

subprime loan

loan to to a borrower with a weak credit history, also called a B and C loan or nonprime loan. Borrowers with previous charge-offs or delinquencies pay a higher rate of interest than A-rated borrowers. Mortgages, home equity loans, and debt consolidation loans are common examples of subprime loans.
loan to a business borrower priced at an interest rate below the prime rate , the reference rate for bank commercial loans.

B and C loan

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