subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income)

subprime mortgages

a subprime loan

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web

But the ultimate failure was their incapacity to adapt to a new global political paradigm, particularly after the 2008 subprime crisis in the United States and the ensuing 2010 EU debt crisis. —Agustino Fontevecchia, Forbes, 10 Jan. 2025

Philippe Laffont’s Coatue Management as well as Michael Burry, best known for calling the subprime mortgage crisis before the global financial crisis in 2008, both significantly hiked their stakes in JD.com last quarter. —Yun Li, CNBC, 30 Dec. 2024

This, coupled with subprime lending and speculation buying, sent Arizona's home-building industry into overdrive and spiked home prices in the aughts, Stapp said. —Jessica Boehm, Axios, 9 Dec. 2024

Key systemic barriers include: • Credit Access: 33% of our population would struggle to qualify for SBA loans due to subprime credit scores. —Jamie Robinson, Forbes, 6 Dec. 2024

Word History

First Known Use

1995, in the meaning defined at sense 1

Legal Definition

subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers

subprime mortgages

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers