Subprime Borrower

Subject – Economy

Context – Credit growth led by households as corporate demand slides: RBI

Concept –

A subprime borrower is a person considered to be a relatively high credit risk for a lender.
Subprime borrowers have lower credit scores and are likely to have multiple negative factors in their credit reports, such as delinquencies and account rejections.
Subprime borrowers may also have a “thin” credit history, meaning they have little or no activity in their credit reports on which lenders can base their decisions.
They typically have credit scores below 670 and other negative information in their credit reports.
Subprime borrowers may find it harder to obtain loans and will usually have to pay higher interest rates when they do.