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SUBPRIME According to Banks:-
A person who have not fixed income and have some ancester’s assests called as Subprime borrower.
Slide 3:
What is subprime lending? Subprime Mortgage Loans or housing loans are very risky. But since profits are high where the risk is high, a lot of lenders get into this business to try and make a quick money. These loans are given to people who have inability to repay the loan and they don’t have stable income. These lenders are called as subprime lenders and the process of giving money is called Subprime lending. Source - Wikipedia
EFFECTS on usa :
EFFECTS on usa Subprime is the cause of USA Economy melt down. Subprime crisis has ended history of many banks in the USA. As of now 22 banks closed because of Subprime crisis. It is started with the Lehman Brothers, a 138 year old company filed bankrupt. It is followed by Washington Mutual Funds. Source - Wikipedia
EFFECT ON INDIA :
EFFECT ON INDIA INDIA was not much affected by Subprime crisis because Indian banking structure is very strong.Indian people are not interested in loans.