Question

RBI asked banks to stop offering teaser loans. What are teaser loans?

Q: Answer-&lt;p&gt;RBI asked banks to stop offering teaser loans. What are teaser loans?&amp;nbsp;&lt;/p&gt;

Teaser loans are mortgage loan in which the borrower pays a very low interest rate initially and which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur.