subject: Teaser Home Loans in India [print this page] Banks will not always keep Teaser Home Loan schemes. From a business finance perspective, the viability of long-term Teaser Home Loans is not convincing. So banks usually offer Teaser Home Loans for a finite period of time. For example, the State Bank of India brought out a home loan scheme. 8 percent interest was charged in the first year, and 9 percent from then onwards. From the 4th year, loans lesser than or equal to fifty lakh rupees, was charged at 9.25 percent interest. This is an example of a teaser home loan. Existing customers felt that the Teaser Home Loan was only to attract new customers. Expressing their concerns to the Banking Codes and Standards Board of India (BCSBI), customers felt that the business finance model of teaser loan providers was not inclusive.
