Subprime lending

(redirected from Sub prime lending)

Subprime lending

Lending to individuals who have a bad credit history or relatively low income. A higher interest rate is charged for such loans because risk to the lender is higher. Excessive subprime lending is often pointed to as one of the major causes of the financial crisis of 2008-2009.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
References in periodicals archive ?
Global Banking News-23 July 2010-Citi closes nine sub prime lending offices(C)2010 ENPublishing - http://www.enpublishing.co.uk
Citifinancial Services, a sub prime lending unit of Citigroup, Inc (NYSE: C), has closed nine of its offices in June.