Why is the control over the overall spending essential

Loan against property is available depending upon the value of the property and this might not have much to do with the immediate requirement of funds. Thus a person might just need a couple of lakhs for some purpose but a larger amount might be available from the bank. This might lead to a situation where the borrower uses funds even though it is not necessary. This can lead to a complete disruption of the entire financial position and piling up of a larger debt figure. In such a situation, there has to be an effective control over the entire spending to ensure that the money is being used only for important purposes and that this is justified.