Q: What is draw down loan ?

Ans: Amy as well as Rosa got approved for Rs 25,00000 construction loan but have only drawn down Rs 10,00000 so far. They will only be charged interest on amount of Rs 10,00000.
The draw down loan is Rs 10,00000 and total loan is Rs 25,00000.
If later in the construction stages Amy and Rosa draw Rs 18,00000( 10,00000+8,00000) for the next phase of the construction, then there will be charged interest on Rs 18,00000.

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