Down Payment for a Home Loan: How Much You Need
Buyers obsess over the loan and forget the part they must arrange themselves: the down payment. A bank never funds the whole price, so the cash you bring upfront decides whether you can buy at all, and how big your EMI is. This guide explains exactly how much down payment you need in 2026, the rules behind it, and the hidden costs most buyers miss.
How much down payment you actually need
| Loan amount | Max bank funding (LTV) | Your minimum down payment |
|---|---|---|
| Up to ₹30 lakh | Up to 90% | Around 10% |
| ₹30 lakh to ₹75 lakh | Up to 80% | Around 20% |
| Above ₹75 lakh | Up to 75% | Around 25% |
These loan-to-value limits are set by the RBI and followed across banks in 2026. So on a ₹1 crore flat, the bank funds up to about 75 percent, and you arrange the remaining 25 percent, roughly ₹25 lakh, from your own funds. The bank also lends against the property value or the agreement value, whichever is lower, so a high circle rate can affect your loan too.
The costs beyond the down payment
The down payment is not your only upfront cash. Budget for these on top:
- Stamp duty and registration: 5 to 7 percent of the value in most states, a large sum banks do not fund. See our Haryana stamp duty guide and UP and Noida guide.
- Processing fees and charges: covered in our home loan charges guide.
- Parking, club, and maintenance deposits on a new project.
- GST on under-construction property, where applicable.
Add it up and the real cash you need before moving in is often the down payment plus another 8 to 12 percent of the price. On a ₹1 crore flat, that can mean ₹30 to ₹35 lakh in hand, well beyond the ₹25 lakh down payment.
Should you pay more than the minimum?
A bigger down payment means a smaller loan, a lower EMI, and less total interest. If you have surplus funds and no better use for them, paying more upfront saves real money over the tenure. But do not empty your savings, keep an emergency buffer of several months' expenses, since a home purchase should not leave you cash-poor. The sensible middle path is to pay a comfortable down payment above the minimum, keep a cushion, and prepay the loan later when you have surplus, as our prepayment guide explains.
How to build the down payment
- Start early with a dedicated savings or investment plan for the goal.
- Use eligible funds: savings, mutual funds, and gifts from close family are common sources.
- Avoid a personal loan for the down payment, since banks see it as extra debt and it can hurt your eligibility.
- Consider a co-applicant to share the burden and raise loan eligibility.
Down payment on under-construction versus ready
The type of property changes how your down payment flows. On a ready resale flat, you typically pay the full down payment and stamp duty upfront around registration, so you need the whole sum in hand quickly. On an under-construction flat with a construction-linked plan, your own contribution and the bank's disbursals are staged over the build period, which can make a large purchase easier to fund from ongoing savings. Either way, the minimum down payment set by the loan-to-value rules is the same, but the timing differs. Plan your cash flow accordingly: a ready flat needs the money now, while a launch lets you spread the outgo, though it carries the delivery risk that a ready flat does not.
Frequently asked questions
How much down payment do I need for a home loan?
Around 10 percent on loans up to ₹30 lakh, 20 percent on ₹30 to ₹75 lakh, and 25 percent above ₹75 lakh, since banks fund up to 90, 80, and 75 percent respectively.
Can I get a 100 percent home loan?
No. Banks fund up to 90 percent for small loans and less for larger ones, so you always arrange a down payment. Beware anyone promising a full loan.
Is stamp duty included in the home loan?
Usually not. Banks fund the property value but generally exclude stamp duty and registration, which is 5 to 7 percent extra that you pay from your own funds.
Should I make a larger down payment?
If you have surplus, yes, it lowers your EMI and total interest. But keep an emergency buffer of several months' expenses rather than emptying your savings.
Can I use a personal loan for the down payment?
It is possible but not advisable. Banks count it as extra debt, which reduces your home loan eligibility and strains your finances. Prefer savings or family funds.
What is loan-to-value or LTV?
The share of the property value a bank will lend, up to 90 percent for small loans and 75 percent for large ones. The rest is your down payment.
Plan for a down payment of 10 to 25 percent depending on the loan size, plus another 8 to 12 percent for stamp duty and charges. Build it from savings, keep a buffer, and pay a comfortable amount above the minimum. Read more finance guides on our blog. Figures follow current RBI norms, so confirm the exact LTV with your bank.
