Subprime Crisis

Subprime crisis can be termed as banks lending money without following any lending rules and regulations. This does not denote over lending, it simply means offering loans without adhering to the guidelines. In such cases, the borrower is not eligible for a loan, due to conditions like poor credit scores, no collateral, self-employed or unemployed, lower household income etc. Such people can be called as high risk borrowers. Banks and other lending agencies today are experiencing hard times due to subprime crisis.