Parallel Financing concept

As per the home loan policy the banks will only fund 80% of the project cost and the balance 20% has to be borne by the customer, and if it’s a under-construction property many banks insist that the customer pay up his 20% of the cost to the builder and only then apply for a home loan.
There are some banks which give a unique facility called parallel funding where the customer can avail his home loan after paying just 10% of the project cost instead of 20%, the balance 10% has to be then paid by the customer as and when the demand is made from the builder over the next 1 or 2 years that the project may take to complete.
At any point of time the percentage of payments made to the builder from a customer and the bank has to be the same, if by any chance the customer fails to pay the balance 10% in proportion to the disbursement requested from the bank the banks may refuse to release the payments until the customer clears his part of the payment to the builder.