SBI firm about keeping teaser loans

State Bank of India made it clear that it is not going to step down from the teaser rate home loans scheme.

In teaser loans scheme, initially the borrower pays EMI at very low interest rate that increases eventually after a few years.

The head of the largest lender of the country State Bank of India, Mr Om Prakash Bhatt said "Every quarter we look at the data. It is data-based. If it's good, then I would extend it. The NPAs on my loans are the lowest and I also have the collateral of the customer's house."

Mr Bhatt believes that the teaser loan scheme has primarily benefited the common middle class families of the country. He said "About 2.92 lakh people have got loans. Where is the tease in the product? There is no risk and there is no opacity. There is no dilution of loan appraisal norms or documentation. Every Indian is eligible."