UPSC 2011 › Indian Economy › Banking & Financial Sector

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UPSC 2011 · Q80 · Indian Economy › Banking & Financial Sector · Save

Why is the offering of "teaser loans" by commercial banks a cause of economic concern?

  1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
  2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show answer
Answer: (a) 1 only