'Sub-prime' refers to
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lending done by banks at rates below PLR
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funds raised by the banks at sub-Libor rates
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group of banks which are not rated as prime banks as per Banker's Almanac
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lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards
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Explanation
Sub-prime lending refers to lending (including mortgages) made to borrowers who do not meet the standard creditworthiness criteria - typically lower credit scores, insufficient income documentation, or higher debt-to-income ratios. This sector was at the center of the 2008 financial crisis. Sub-prime does NOT refer to lending below PLR, sub-Libor rates, or non-prime bank classifications.