GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Soft Loan
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Teaser Loan
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Promo Loan
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Early Bird Loan
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Detailed explanation-1: -› Further, Teaser loans can be better defined as an adjustable-rate mortgage in which homebuyers are offered loans at cheaper rates in the first two to three years. The standard rates are applied thereafter. Teaser loans can also be withdrawn after the initial term.
Detailed explanation-2: -An adjustable-rate mortgage (ARM) is a loan with an interest rate that changes. ARMs may start with lower monthly payments than fixed-rate mortgages, but keep in mind the following: Your monthly payments could change. They could go up-sometimes by a lot-even if interest rates don’t go up. See page 20.
Detailed explanation-3: -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.