The prime rate is the rate banks charge all but their largest customers, who can negotiate a sub-prime rate.

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The prime rate is the interest rate that commercial banks charge their most creditworthy customers, typically large corporations. There is no negotiation for a sub-prime rate; rather, sub-prime rates refer to the interest rates charged to borrowers with less favorable credit histories, which are higher than prime rates.

The Prime Rate Is the Rate Banks Charge All but Their