subprime loan

subprime loan
n.
A loan made to an individual who cannot obtain a loan from a traditional lender at market rates due to a low credit rating, typically made at a higher interest rate to offset the risks incurred by the lender.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


subprime loan
A loan to a borrower who does not qualify for a loan at the best market rates (the prime rate) because of a weak credit history, inadequate assets to secure the loan, or an income too low to guarantee payments. These loans are offered at a higher interest rate because of the increased risk to the lender. Not all lenders engage in subprime lending and the rates and terms of the loans vary from institution to institution.
Category: Personal Finance & Retirement

Nolo’s Plain-English Law Dictionary. . 2009.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Subprime Loan — A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Quite often, subprime borrowers are often turned away from traditional lenders because of their low credit ratings or other factors that… …   Investment dictionary

  • subprime mortgage — See: subprime loan Category: Personal Finance & Retirement Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009. subprime mortgage …   Law dictionary

  • Subprime mortgage crisis — Part of a series on: Late 2000s financial crisis Major dimensions …   Wikipedia

  • Subprime — Werbung eines Hypothekenmaklers für Kreditnehmer mit geringer Bonität Als Subprime Markt wird ein Teil des privaten (also nicht für gewerbliche Zwecke dienenden) Hypothekendarlehenmarkts bezeichnet, der überwiegend aus Kreditnehmern mit geringer… …   Deutsch Wikipedia

  • Subprime-Kredit — Werbung eines Hypothekenmaklers für Kreditnehmer mit geringer Bonität Als Subprime Markt wird ein Teil des privaten (also nicht für gewerbliche Zwecke dienenden) Hypothekendarlehenmarkts bezeichnet, der überwiegend aus Kreditnehmern mit geringer… …   Deutsch Wikipedia

  • Subprime-Markt — Werbung eines Hypothekenmaklers für Kreditnehmer mit geringer Bonität Subprime Markt bezeichnet zweierlei: zum einen einen Teil des privaten (also nicht für gewerbliche Zwecke dienenden) Hypothekendarlehenmarkts bezeichnet, auf dem Kreditnehmer… …   Deutsch Wikipedia

  • Subprime Lender — A type of lender that specializes in lending to borrowers with a tainted or limited credit history. Subprime lending is more concentrated in a smaller number of large lenders than prime lending. The subprime loan market is more tiered compared to …   Investment dictionary

  • subprime — 1. adjective /ˈsʌbpɹʌɪm,ˈsəbpɻaɪm/ a) Less than prime; inferior. b) (now world wide) Designating a loan (typically at a greater than usual rate of interest) offered to a borrower who is not qualified for other loans (e.g. because of poor credit… …   Wiktionary

  • Subprime lending — Subprime redirects here. For the 2007 house mortgage crisis, see Subprime mortgage crisis. In finance, subprime lending (also referred to as near prime, non prime, and second chance lending) means making loans to people who may have difficulty… …   Wikipedia

  • Loan modification in the United States — Loan modification, the systematic alteration of contactual mortgage loan agreements, has been practiced in the United States since the 1930s. During the Great Depression loan modification programs took place at the state level in an effort to… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”