nraju,
Sounds like you are trying to describe a resistance location for earth faults on cables (use of the term loop method).
This basically measures the ratio of the resistance of the length of cable to the fault to the full length of the cable. It is also called a bridge location or resistance location.
It is performed with a resistance bridge, and this is basically where the term "loop" comes from, in that the different measurements you take form a loop circuit. The different measurements take into account the resistance of the leads, and resistance of the fault.
You need to have at least one good core in the cable, or a ratio of insualtion resistance of at least 10:1 of the good core to the faulty one.
There are a number of different location methods, and I would assume the link by jbartos would give most of the good info (as Baur have been in the business of making bridges for years).