« Back to Glossary Index« Back to Glossary Index
Categories: Economics & Finance
In finance means making loans to people who may have difficulty maintaining the repayment schedule, sometimes reflecting setbacks such as unemployment, divorce, medical emergencies, etc.
These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.
(source: wikipedia.org )
Synonyms:
subprime mortgage
