Definition of "subprime"

subprime

/ˈsʌb.pɹʌɪm/

adjective
not comparable
1. Less than prime; inferior.
2. (US, banking, now worldwide) Designating a loan (typically at a greater than usual rate of interest) offered to a borrower who is not qualified for other loans (for example, because of a poor credit history).
  Quotations
  Central to the story was Steve Eisman, an eccentric and rebarbative hedge-funder who was one of the earliest to see through the subprime lies.
  2014 April 5, Alex Preston, “Flash Boys: Cracking the Money Code by Michael Lewis, review: Michael Lewis tells the compelling true story of one man’s mission to tame Wall Street [print version: Capital ventures]”, in The Daily Telegraph‎, London, archived from the original on 8 April 2014, page R26
3. (US, banking, dated) Designating a type of commercial lending rate, less than the prime rate, offered to desirable borrowers.
noun
plural subprimes
1. A subprime loan.