What is the manner of disbursement of the loan

There are two ways in which the loan against property is disbursed. The first route is the normal loan route where a specific figure is approved and this is then given to the borrower as a one-time payment. The amount here is the figure on which the interest will be calculated and this becomes the base for the entire transaction. The second route is the overdraft method where a limit is approved but the borrower will have to pay interest only on the amount that he/she has actually borrowed. The borrower can take the required amounts when he/she needs funds. At the same time, he/she can also pay back the required amount as and when the necessary funds are available with him/her. This will ensure the fund flow and the working of the loan is also done accordingly.