Is Teaser rate Good for Customers – “It sure is� says Prashant Hegde at LoanStreet. Difference of Opinion Between Bankers- Read here…

The two top lenders -- State Bank of India and ICICI Bank -- are not the same page when it comes to reintroducing the controversial 'teaser loans' which were shelved four years ago as the regulator flagged asset quality issues.

Pitching for the reintroduction, SBI Chairman Arundhati Bhattacharya has said, “I still believe there is a place for teaser loans mainly because when people take loans in initial days, they need some leeway. But as time passes, a higher EMI does not pinch much as their salaries go up that can service a higher EMI.�

However, the largest private lender, ICICI Bank, which has a high exposure to home loans, is not open to the idea, saying standard rates are better.

“We’ve always been preferring standard rates over enticing options as in the former, the customer is aware from day one what the rate is,� said ICICI Bank Executive Director Rajiv Sabharwal.

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