# Down Payment, LTV and What You Actually Need to Arrange

> The loan only covers up to the LTV cap — the rest is your down payment, plus stamp duty and registration. Here's the real cash you need on a home purchase.

_By emi.me Editorial · Reviewed by emi.me Editorial · Updated 2026-06-25_
Source: https://emi.me/learn/down-payment-ltv-and-what-you-need-to-arrange/

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The loan never covers the whole purchase. Lenders fund only up to the **loan-to-value (LTV)** cap — commonly around 75–90% of the property's value depending on the loan size — and **everything else is yours to arrange**: the down payment, plus stamp duty and registration on top. Knowing the real cash figure up front avoids a nasty surprise at sanction.

## The two limits, side by side

Your sanction is the **lower** of two caps:

- **FOIR (income):** how much EMI your income can service — see [what FOIR is](/learn/what-is-foir-and-how-lenders-use-it/).
- **LTV (property):** how much the lender will lend against the property's value.

A high income won't get you a bigger loan than the LTV allows, and a valuable property won't help if your income can't service the EMI. Both have to line up.

## A worked example

Take a **₹50,00,000** property at an 80% LTV. The maximum loan is **₹40,00,000**, so your **down payment is ₹10,00,000**. On top of that, stamp duty and registration — which vary by state and are usually paid from your own funds — might add a few lakh more. So the cash you need to arrange is the down payment *plus* those charges, not just the gap to the loan.

## Why a bigger down payment can be smart

Beyond meeting the LTV rule, putting in more upfront shrinks the loan, the EMI and the total interest — and a lower LTV sometimes earns a slightly better rate. The trade-off is locking up cash you might want as an emergency buffer. Note too that stamp duty and registration paid in the purchase year can count toward your [Section 80C](/learn/section-80c-five-year-sale-rule/) limit.

Use the eligibility calculator above to see the income-side limit, then check the property-side limit against the LTV. Both numbers are indicative — your lender's valuation and policy decide the final figure.