Designating a type of commercial lending rate, less than the prime rate, offered to desirable borrowers
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 history)
Subprime (also sub-prime or B-Paper) describes a specific lending market sector. Typically, subprime products (e.g., loans, mortgages, or credit cards) are for persons with blemished or limited credit history - those who do not qualify for the prime rate market
Subprime lending, also called B-paper, near-prime, or second chance lending, is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. The term also refers to paper taken on property that cannot be sold on the primary market, including loans on certain types of investment properties and certain types of self-employed individuals