Subprime Loan
A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans.
Investopedia Commentary
Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. Although the additional percentage may seem small, for mortgages and other large loans, this translates to thousands of dollars worth of additional interest payments.
See also: Interest Rate, Loan, Prime Rate