A slang term for a loan extended to a borrower with "no income, no job and no assets". Whereas most lenders require the borrower to show a stable stream of income or sufficient collateral, a NINJA loan ignores the verification process.


A NINJA loan is considered to be a type of subprime lending, often found in the mortgage market. While the specifics of any NINJA loan can change, most offer the lender a low initial rate, which is then increased after a few periods of payment. The borrower is hoping for the value of their property to appreciate significantly, allowing them to repay the loan with the newly found equity. However, when the property doesn't appreciate, many borrowers cannot make the repayment. This makes the NINJA loan a very risky proposition for lenders.

  1. Subprime Loan

    A type of loan that is offered at a rate above prime to individuals ...
  2. Default

    1. The failure to promptly pay interest or principal when due. ...
  3. Collateral

    Property or other assets that a borrower offers a lender to secure ...
  4. Appreciation

    An increase in the value of an asset over time. The increase ...
  5. Encumbrance

    A claim against a property by a party that is not the owner. ...
  6. Equity

    Equity is the value of an asset less the value of all liabilities ...
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