Multiple choice

'Sub Prime Lending' is a term applied to the loans made to-

  1. those borrowers who do not have a good credit history

  2. those who wish to take loan against the mortgage of tangible assets

  3. those who have a good credit history and are known to bank since 10 years

  4. those borrowers who are most preferred customers of the Bank
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Subprime lending refers to the practice of lending to borrowers with poor credit histories or high risk profiles, who would not qualify for conventional loans.

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