Subprime Rates mean interest rates that are higher than the usual prime rates. People with poor credit record are offered subprime loans. Subprime lenders apply risk-based pricing to define how much interest to charge on a certain loan.
Additional meaning of Subprime Rates:
Factors that impact subprime rates include the income of the borrower, the size of the loan, the number of delinquent accounts on the individual's credit report and the amount of the down payment for the loan.