Payment plans and finance
Loan disbursement
The release of sanctioned home loan money to the developer. For under-construction flats, banks disburse in tranches as construction stages are met.
Also called: disbursal
Disbursement is when the lender actually pays. For under-construction property, lenders disburse in parts against the developer's demand letters as construction progresses.
Each disbursement needs paperwork: the demand letter, the architect's stage certificate, and the buyer's request to the bank. Missing documents delay payment by weeks. A consistent demand letter format that banks recognise speeds this up.
TipFor financed buyers, send the demand letter to the buyer and a copy to the bank's disbursement contact on the same day.
Related terms
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