National Housing Bank warns against Teaser Home Loan Rates

National Housing Bank, which regulates housing finance firms, has warned against risks to the sector from teaser rates under which loans are given at concessional rates for a limited period. The Finance Ministry, as also the banking sector regulator RBI, have already expressed their apprehensions over teaser rates, which a number of lenders, including SBI, HDFC and ICICI Bank, have been offering in a bid to expand market share.

“We have to be on top of the issue (teaser rate)… closely follow the issue to have better handling of the subject so that it should not start hurting the sector,” NHB executive director R V Verma said.