Multiple choice

For which one of the following Loan Products 'teaser loans' are offered by Banks?

  1. Education Loans

  2. Commercial Loans

  3. Loans against security of gold

  4. Retail Trade Loans

  5. Home Loans

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Teaser loans are loans with initially low interest rates for a fixed period (typically 1-3 years), after which the rate resets to market rates. These were commonly offered for home loans before RBI tightened regulations, as the housing sector is most sensitive to interest rate changes.