2025 Economy - Banking

Why are teaser loans given by commercial banks a cause of economic concern? 1. Teaser loans are considered to be a form of sub-prime lending and banks may face the risk of default in future. 2. In India, teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. Which of the statements given above is/are correct?

• 1 only
• 2 only
• 1 and 2 both
• Neither 1 nor 2