Down payment
The part of a home's price you pay yourself, because the bank won't lend all of it.
A down payment is the part of a home’s price you pay from your own money. RBI limits how much of a home’s value a bank can lend, through the loan-to-value cap, so you fund the rest. Stamp duty and registration come on top.
How much you need
RBI caps a home loan at a share of the property’s value: 90% for loans up to ₹30 lakh, 80% for ₹30 lakh to ₹75 lakh, and 75% above ₹75 lakh. Your down payment is at least the rest, so 10%, 20% or 25% of the price. On a ₹60 lakh flat with an 80% loan, that is ₹12 lakh from your pocket. Putting in more than the minimum lowers the loan, the EMI and the total interest.
The cost that surprises buyers
The down payment is not the only upfront cash you need. Stamp duty and registration, often several percent of the price, are extra and come on top, because RBI’s rules say a bank should not include them in the value it lends against (except for homes up to ₹10 lakh). So on that ₹60 lakh flat you need the ₹12 lakh down payment plus a few lakh more for duty and charges.
Plan for it
Because it is a large, fixed sum needed on a known date, a home down payment is a goal to save for in safe, accessible places, not in volatile equity. See rent vs buy a home.
Questions people ask
How much down payment do I need for a home loan?
RBI caps a bank's home loan at 90% of the home's value for loans up to 30 lakh rupees, 80% above 30 lakh up to 75 lakh, and 75% above 75 lakh. Your down payment is at least the rest: 10%, 20% or 25%.
Is stamp duty part of the down payment?
No. Stamp duty and registration are extra costs on top of the down payment. RBI's rules say banks shouldn't include them in the home's value when working out the loan, except for homes costing up to 10 lakh rupees.
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