Economics · Monetary Policy and Banking
What is meant by a 'Teaser Loan' in the banking sector?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Loans offered at a fixed high interest rate throughout the tenure
- 2Loans offered at comparatively lower interest rates in the initial years, which become floating/higher later✓
- 3Loans provided exclusively to corporate clients at the base rate
- 4High-risk loans provided without any collateral security
Correct answer
Loans offered at comparatively lower interest rates in the initial years, which become floating/higher later
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