subprime loan

Definition of "subprime loan"
  1. A high-interest credit given to borrowers with poor credit scores and low income, posing higher risk to lenders
How to use "subprime loan" in a sentence
  1. Due to his poor credit score, he could only secure a subprime loan.
  2. Lenders often charge higher interest rates for a subprime loan due to the increased risk.
  3. After several payment defaults, she was only eligible for a subprime loan.

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