What are teaser loans?
Aug 26, 05:08

Teaser loans are products that offer a lower rate of interest on loans for a fixed period of time, after which the rate of interest adjusts to the market levels. Credit card, adjustable-rate mortgages and gold loans are common products that can be counted under the teaser loan category in India. Banks and non-banking finance companies offer competitive teaser loans in accordance with their credit disbursements targets. The RBI had in 2010 issued directions banks to create higher provisions for teaser home loan standard products, at 2 per cent from 0.4 per cent earlier.

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