A B/C loan is a loan to low credit quality borrowers and borrowers with minimal credit history. This type of financing, which includes personal consumer loans and mortgages, is typically issued by alternative lenders charging high-interest rates and fees. They offer a second tier of loan eligibility to subprime or thin file borrowers, the sort of applicant who would not qualify for an A-labeled loan, which follows more conventional standards and is issued by traditional financial institutions.
