The term "qualified borrower" refers to a person who meets certain criteria that make them eligible for taking out a loan. These criteria can vary depending on the lender and type of loan, but generally speaking, qualified borrowers are individuals with good credit scores, stable incomes, low debt-to-income ratios, and a demonstrated ability to manage financial responsibilities. In other words, they have shown themselves to be reliable and trustworthy when it comes to paying back loans on time.