Definitions

1. noun

a type of loan or credit offered to borrowers with a low credit score, often at a higher interest rate and with more stringent terms.

“The bank was facing huge losses due to a large number of subprime mortgages that had been issued to borrowers who were unable to pay their loans.”

2. adjective

relating to or characteristic of loans or credit with low credit scores, high interest rates, or stringent terms.

“The subprime lender was accused of taking advantage of vulnerable borrowers who were unable to afford the high interest rates.”