Down Payment

The down payment is the portion of a purchase you fund yourself, upfront, with the loan covering the balance. For home loans, lenders finance only up to a regulatory ceiling of the property value, so the rest must come from your own savings — which means the down payment is rarely optional.

A larger down payment has knock-on benefits. It shrinks the loan amount, which in turn lowers both your monthly EMI and the total interest you pay over the tenure, since interest is charged on the borrowed sum. It also reduces the lender’s risk and your LTV (loan-to-value) ratio, which can sometimes earn you a slightly better rate or smoother approval. A smaller loan likewise eases your affordability check, the FOIR, leaving more headroom in your monthly budget.

The trade-off is liquidity: putting more cash down means less left for emergencies, registration costs and moving-in expenses. The right balance depends on your reserves and other goals, so it is worth modelling a few scenarios before deciding.

Worked example. On a ₹50,00,000 property, a 20% down payment of ₹10,00,000 leaves a ₹40,00,000 loan; a larger down payment shrinks the loan and EMI further.

These figures are estimates, and minimum down-payment requirements vary by lender and loan size — confirm the exact terms with your lender. Use the home loan calculator to see how different down payments change your EMI.