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For Investors
Buying a house is one of the biggest financial decisions in anyone’s life. In India, whether you’re purchasing a small apartment in Gandhinagar, a luxury villa in Bangalore, or a flat in Mumbai, you’ll notice one thing – banks never finance the entire cost of your property. This is where down payment comes in.
A down payment is the upfront amount you pay from your own pocket when purchasing a property, while the remaining amount is financed through a home loan. For example, if your dream home costs ₹50 lakh and the bank funds 80%, you’ll need to pay ₹10 lakh as a down payment.
To make this process easier, you can use a Down Payment Calculator. It’s a simple tool that tells you exactly how much money you need to arrange before applying for a loan.
In this guide, we’ll explain:
What a Down Payment Calculator is.How down payment works in India.Examples of down payment scenarios.Tips to arrange down payment.FAQs every homebuyer asks.By the end, you’ll know exactly how to plan your down payment smartly.
A Down Payment Calculator is an online tool that helps you calculate the minimum upfront amount required to buy a property.
You just need to enter:
Total property valueLoan-to-value ratio (the % funded by the bank)Loan tenure and interest rate (optional for EMI comparison)The calculator then tells you how much down payment you need to make.
If you’re buying a house worth ₹60 lakh and your bank offers 80% loan, then:
Loan amount = ₹48 lakhDown payment = ₹12 lakhWithout a calculator, you would have to calculate manually. With a calculator, you get instant, accurate results.
In India, RBI guidelines play a big role in determining how much banks can lend.
For properties below ₹30 lakh → Up to 90% loan (10% down payment).For properties between ₹30–75 lakh → Up to 80% loan (20% down payment).For properties above ₹75 lakh → Up to 75% loan (25% down payment).This is known as the Loan-to-Value Ratio (LTV).
| Property Value | LTV Ratio Allowed | Loan Amount | Minimum Down Payment |
|---|---|---|---|
| ₹25 lakh | 90% | ₹22.5 lakh | ₹2.5 lakh (10%) |
| ₹60 lakh | 80% | ₹48 lakh | ₹12 lakh (20%) |
| ₹1 crore | 75% | ₹75 lakh | ₹25 lakh (25%) |
This means that the higher the property value, the higher the down payment requirement.
Bank funds 80% → ₹32 lakh loan.Buyer needs 20% → ₹8 lakh down payment.Bank funds 80% → ₹60 lakh loan.Buyer needs 20% → ₹15 lakh down payment.Bank funds 75% → ₹90 lakh loan.Buyer needs 25% → ₹30 lakh down payment.👉 Clearly, the bigger the property, the heavier the down payment. That’s why financial planning is so important.
While banks set the minimum down payment, you can always choose to pay more. Here’s why it helps:
Lower EMI burden – The more you pay upfront, the smaller your monthly EMI.Reduced interest outgo – A smaller loan amount means less interest over the tenure.Better loan approval chances – Banks see you as a low-risk borrower.Option to negotiate better interest rates – With lower risk, lenders may reduce your rate.Quicker loan closure – Smaller loans are easier to repay early.Example:
| Down Payment | Loan Amount | EMI (20 years, 8.5%) | Total Interest Paid |
|---|---|---|---|
| 20% (₹12 lakh) | ₹48 lakh | ₹41,600 | ₹51 lakh |
| 30% (₹18 lakh) | ₹42 lakh | ₹36,400 | ₹45 lakh |
By paying 10% more upfront, you save ₹6 lakh in interest over 20 years!
In India, the minimum down payment is usually 10–25% depending on property cost. But should you stick to the minimum or pay more?
Minimum 20% for mid-range homes.30–40% if you want to reduce EMI burden.Salary: ₹80,000/month.Buys ₹60 lakh flat → pays 20% (₹12 lakh).Keeps extra savings for emergencies.High income, good cash flow.Buys ₹1 crore villa → pays 40% (₹40 lakh).Takes smaller loan, clears it in 10 years.The right strategy depends on your income stability, savings, and financial goals.
Using our calculator is simple:
Enter your property value (e.g., ₹50 lakh).Enter the loan percentage offered by your bank (e.g., 80%).Instantly see the down payment required.Optionally, calculate EMI based on loan amount.Pro Tip: Try different scenarios (80%, 85%, 75% loan) to see how much you need to arrange upfront.
Property Cost – Higher value = higher down payment.LTV Ratio by Banks – As per RBI guidelines.CIBIL Score – Higher scores (750+) may help you get higher funding.Type of Property – Ready-to-move vs. under-construction projects.Income Stability – Salaried employees usually get better offers.Start early with SIPs and mutual funds.Use Employee Provident Fund (EPF) withdrawal.Sell old gold, land, or unused assets.Opt for joint loans with spouse or parents.Avoid taking personal loans for down payment (banks don’t allow it).👉 Remember, down payment should come from savings or investments, not borrowed money.
Home Loan: 10–25% of property cost.Car Loan: 15–30% depending on vehicle priceEducation Loan: 5–15% as margin money.Personal Loan: No down payment required.
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