Definitions for "Subordinated Loan"
Often an unsecured loan, and one which would only be repaid after secured loans had been repaid.
Debt that ranks below other loans with regard to claims on repayment and collateral but is senior to preferred stock. Subordinated debt can be junior secured or unsecured and can have no equity interest or can have detachable equity warrants, depending upon the risk associated with the loan.
Loan having a lower priority in the event of repayment difficulties, compared to other categories of lender.