subprime

adjective

sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
1
: having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income)
subprime mortgages
a subprime loan
2
: extending or obtaining a subprime loan
subprime lenders
subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Credit Is Weakening From The Middle This is no longer just about subprime risk. Jim Osman, Forbes.com, 21 July 2025 But payday lenders say the legislation is needed to fill a gap in Indiana's current lending options and to provide a pathway to better credit for subprime borrowers. Tony Cook, IndyStar, 2 July 2025 Over the course of seven days following his April 2 announcement, the S&P 500 lost more than 12%, a decline not typically seen outside of extreme events like the Covid-19 pandemic and the subprime mortgage crisis of 2008. Rob Wile, NBC news, 4 May 2025 Steve Eisman, the investor who called the subprime mortgage crisis, said fears of the massive size of the federal budget deficit may be overblown. Yun Li, CNBC, 8 July 2025 See All Example Sentences for subprime

Word History

First Known Use

1995, in the meaning defined at sense 1

Time Traveler
The first known use of subprime was in 1995

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Cite this Entry

“Subprime.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/subprime. Accessed 29 Jul. 2025.

Legal Definition

subprime

adjective
sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
1
: having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers
subprime mortgages
2
: extending or obtaining a subprime loan
subprime lenders
subprime borrowers

More from Merriam-Webster on subprime

Last Updated: - Updated example sentences
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