Subpr

Subpr, short for "subprime," refers to a category of borrowers who are considered high-risk by lenders due to their lower credit scores, higher debt-to-income ratios, or other financial factors. These borrowers typically have a higher likelihood of defaulting on their loans compared to prime borrowers. Subprime lending involves providing loans to these borrowers at higher interest rates to compensate for the increased risk. The subprime mortgage crisis, which began in 2007, was a significant event in the global financial system, leading to widespread defaults and foreclosures, and contributing to the 2008 financial crisis. The term "subprime" is often used interchangeably with "substandard" or "non-prime" to describe these types of loans.