Below Market Interest Rate - BMIR

A rate of borrowing on a loan that is below the prevailing rate(s) in the commercial banking market for loans of similar risk.

Bob was recently released from a rehab facility and has dreams of opening a halfway house to help other recovering addicts. Knowing that government subsidy programs qualify him for a below market interest rate on certain loans, Bob applies for a $250,000 loan to purchase a 10-bedroom building and a BMW as the official transportation for the house. The real estate portion of the loan was approved, but Bob could not get a BMIR to finance the Beamer.