Thinking of Taking a Home Loan, Know How Much Down Payment is Required?

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

Apply for a Home Loan Now!