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: Mortgage Lender Implode-o-Meter

Teaser loans: banks need to bite bullet

By Implode-Explode Heavy Industries

"In its mid-year review of monetary policy, the Reserve Bank of India (RBI) last week raised the provision for standard assets of such loans five fold?from 0.4% to 2%. Higher provisioning will jack up the cost of funds for banks and discourage them from aggressively pushing for teaser loans. According to RBI, such loans impact the quality of assets as chances of defaults by the borrowers are high."

Full post as published by Mortgage Lender Implode-o-Meter on November 07, 2010 (boomark / email).