Subprime Loan

A subprime loan is a type of loan offered to borrowers with lower credit scores or higher risk profiles, typically resulting in higher interest rates compared to prime loans. These loans are designed for individuals who may not qualify for standard loans due to credit issues or financial instability. While subprime loans provide access to credit, they also come with increased borrowing costs and greater risk of default. 

A loan management software can assist in monitoring subprime loan performance, tracking payment histories, and managing risk through detailed analytics and reporting.