How Much Down Payment Required for a Home Loan?

What is a Home Loan Down Payment?

A down payment is ‘one’s own contribution’ to the property purchase. It refers to the percentage of the property cost the buyer must pay the seller upfront.

Minimum Down Payment for a Home Loan

As per RBI/NHB guidelines, financial institutions can offer up to 90% LTV (loan to value), depending upon the property cost.

LTV Offered on Property Value

• Property Value Below 30 Lakhs then LTV Allowed Max. 90% • Property Value 30 to 75 Lakhs then LTV Allowed Max. 80% • Property Value Above 30 to 75 Lakhs then LTV Allowed Max. 75%

Benefits of Paying Minimum Down Payment

Helps get an affordable loan without hurting your pocket  The minimum down payment for a home loan does not affect your savings   Helps retain surplus liquid cash for high-yielding assets

Benefits of Paying Bigger Down Payment

Reduces loan amount and overall liability It helps get favourable interest rates and lower EMI Buyers can repay the loan quickly

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