subprime
- The term for an interest rate that exceeds the prime rate, usually applied to loans given to borrowers with low income
- The act of giving out or receiving a loan with an interest rate higher than the standard prime rate
- Due to their low income, they could only qualify for a subprime loan.
- The bank was accused of predatory lending for its widespread use of subprime loans.
- Despite the risks, some investors are drawn to the high interest yields of subprime loans.
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