Down Payment for a Home in India: How Much You Need and Where to Find It

You have done the EMI maths and it works. The bank says you are eligible for a ₹60 lakh loan. Then the builder's cost sheet arrives: agreement value, GST, stamp duty, registration, parking, maintenance deposit. The loan covers less of it than you thought, and the gap is yours to fill.

The down payment is the part of a home purchase you pay from your own pocket. Getting it right decides how quickly you can buy, how big your EMI is, and whether you start your new life in the flat with any savings left.

How much banks will lend: the RBI loan-to-value rules

The Reserve Bank of India caps how much of a home's value a bank can lend. This is the loan-to-value ratio, or LTV. The cap depends on the size of the loan:

• Loans up to ₹30 lakh: up to 90% of the property value.
• Loans above ₹30 lakh and up to ₹75 lakh: up to 80%.
• Loans above ₹75 lakh: up to 75%.

These are ceilings, not promises. A lender can offer less based on your income, credit score, age, or its own view of the property. The value used is usually the lower of the agreement price and the bank's own valuation, so if the bank values the flat below what you are paying, your own share goes up.

What the loan does not cover

Under RBI rules, banks do not count stamp duty, registration and similar documentation charges as part of the property cost when working out the loan. The exception is low-value homes costing up to ₹10 lakh, where these can be included. So for most buyers, these costs come fully out of pocket, on top of the down payment.

Other costs that often fall on you:

• Stamp duty and registration: in Bengaluru, for homes above ₹45 lakh, stamp duty, cess and registration together come to roughly 7% of the value as of November 2026. Check the current rates on the Kaveri portal before you budget.
• GST on under-construction homes: 5% for most homes (1% for affordable homes) as of November 2026, with no input tax credit. Ask your lender whether it will fund the GST portion; many treat it differently.
• Car parking, club membership, and preferential location or floor-rise charges if they are billed separately.
• Maintenance deposit and advance maintenance, often one to two years upfront.
• Loan processing fee, legal and valuation charges.
• Interiors, furniture and moving. Not part of the purchase, but you will need the cash soon after.

Worked examples

All figures are illustrative and assume the bank values the home at the agreement price.

A ₹28 lakh flat

The loan stays under ₹30 lakh, so up to 90% is allowed: ₹25.2 lakh. Your down payment is ₹2.8 lakh, plus stamp duty and registration. In Karnataka, homes in lower price bands pay a lower stamp duty rate, so check the slab that applies.

A ₹70 lakh flat in Bengaluru

• Maximum loan at 80%: ₹56 lakh.
• Down payment: ₹14 lakh.
• Stamp duty, cess and registration at about 7%: around ₹4.9 lakh.
• Total from your own pocket before interiors: close to ₹19 lakh, or about 27% of the price.

A ₹95 lakh flat

At 80% the loan would be ₹76 lakh, which falls in the above-₹75-lakh band, where only 75% is allowed. That would cut the loan to ₹71.25 lakh. But a loan of exactly ₹75 lakh is still in the 80% band, and ₹75 lakh is only about 79% of ₹95 lakh, so a lender can sanction it. Asking for ₹75 lakh rather than the full 80% can save you nearly ₹4 lakh of extra down payment. Ask your lender how it applies the bands.

A ₹1.5 crore home

The loan is capped at 75%, so ₹1.125 crore. Your down payment is ₹37.5 lakh, before stamp duty, registration and other costs.

Should you pay more than the minimum?

A bigger down payment means a smaller loan, a lower EMI and much less interest over 20 years. Some lenders also offer a slightly better rate when the loan is a smaller share of the value.

But do not empty every account to do it. Keep an emergency fund of at least six months of expenses and EMIs. With the RBI repo rate at 5.50% after the October 2026 hike, floating-rate EMIs can rise, and you want a cushion. You can always prepay the loan later when you have spare cash; floating-rate home loans to individuals carry no prepayment penalty.

Where to arrange the down payment

1. Savings and fixed deposits. The simplest source. Break FDs close to the payment date to keep earning interest until then.
2. Mutual funds and shares. Plan sales over two financial years if you can. Long-term gains on listed equity are taxed at 12.5% above an annual exemption, and short-term gains at a higher rate, so selling in a rush can cost you.
3. Provident Fund. EPF allows a partial withdrawal for buying or building a home, subject to conditions on service period and amount. The rules have been revised in recent years, so check current eligibility on the EPFO portal before counting on it.
4. Gifts from family. Money gifted by close relatives such as parents is generally not taxed in your hands. Keep a simple gift letter and make sure it moves by bank transfer, because the lender will ask where the money came from.
5. Selling an existing property or gold. Check the capital gains tax first and whether reinvesting in a new home gives you relief. A CA can tell you what applies to your case.
6. Employer housing loans or advances. Some employers offer these at low rates. Worth asking HR.

Mistakes to avoid

• Taking a personal loan for the down payment. Its EMI cuts your home loan eligibility, the rate is high, and banks may question the source.
• Paying any part in cash. It is unsafe, can fall foul of income tax rules, and leaves you without proof of payment. Pay everything by bank transfer or cheque and get receipts.
• Paying a large booking amount before checking the loan. Get at least an in-principle approval, and check the project is RERA-registered, before you commit serious money.
• Forgetting the costs after the down payment. Stamp duty, registration and interiors arrive within weeks of each other.
• Assuming the bank will match the price. If the valuation comes in lower, the difference is yours. Ask the lender for an early valuation on a resale home.
• Using your emergency fund. A job change or medical bill in the first year is far harder to handle with nothing in the bank.

This is general guidance; for tax questions on selling investments or property to fund a purchase, speak to a CA. When you are planning a purchase, Skyros Estates can help you build a full cost sheet, compare lender offers and shortlist RERA-verified homes that fit your budget.