Definition - What does Sub-Prime Loan mean?
A sub-prime loan is a type of loan given to a borrower who has a weak credit history and who doesn’t qualify for a loan at the best rates. Other than a bad credit rating, a low income or inadequate assets also make it difficult for a borrower to secure a loan.
Justipedia explains Sub-Prime Loan
Sub-prime loans are usually attached to a higher rate of interest because of uncertainties related to the borrower. Not many lending institutions offer this type of loan. The ones that do have different terms and conditions.
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