Question
Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern?
Which of the statements given above is/are correct?
- The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
- In India, teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/are correct?
Answer: Option C
Answer: (c)
Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-income home buyers.
Unfortunately, these borrowers with increased monthly payments, at times can’t afford.
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Answer: (c)
Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-income home buyers.
Unfortunately, these borrowers with increased monthly payments, at times can’t afford.
Was this answer helpful ?
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