The largest private sector lender of the country, ICICI Bank has cleared that its new home loan product should not be considered a teaser loan.
Although it has a fixed cum floating component associated with it, it is not a teaser loan, said CEO and MD of the bank, Ms Chanda Kochhar.
She backed up her point saying that the loan rates are the same as the floating rates of the bank and nowhere has a differential rate bias been created.
She said that the product has been opened to give an option to customers to fix the loan for some time. "The rate of interest gets fixed and additionally the spreads on the floating rates also get fixed. So, it is predictable," she said.
This will give flexibility in EMIs to the customer, she added.