The rules set a minimum. Your finances should set the number. Here is how to work out a down payment that you can carry comfortably.
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THE SHORT ANSWER
The down payment for home loan in India is a minimum of 10%, 20% or 25%, because RBI rules let banks lend up to 90% of the property value for loans up to ₹30 lakh, 80% for ₹30 to 75 lakh and 75% above ₹75 lakh. But the real cost of buying also includes stamp duty, GST and registration, so for most Mumbai flats you should plan on roughly 35% of the price in cash if you are buying under construction.
KEY TAKEAWAYS
01. Minimum down payment is 10%, 20% or 25%, depending on the loan size, under RBI’s loan to value limits.
02. Stamp duty, GST and registration come on top and are not usually financed by the bank.
03. A larger down payment lowers your EMI and total interest, but do not drain your emergency fund.
04. Under-construction homes are paid in stages, so your cash needs are spread over time.
05. Check tax deductions with a chartered accountant, as the Income-tax Act 2025 renumbered the old sections.
How much down payment do you need for a home loan in India?
The Reserve Bank of India sets limits on how much of a property’s value a bank can lend, called the loan to value (LTV) ratio. The home loan LTV ratio RBI prescribes varies with the loan size. Under the limits as published by lenders, the minimum down payment for home loan applicants depends on the size of the loan.
Loan amount | Maximum loan to value | Minimum down payment |
Up to ₹30 lakh | 90% | 10% |
₹30 lakh to ₹75 lakh | 80% | 20% |
Above ₹75 lakh | 75% | 25% |
Based on RBI loan to value limits as reproduced by lenders. Your bank's own policy may be stricter. Check the RBI site and your lender.
Since most Chembur and Thane homes cost well above ₹75 lakh, the practical minimum is 25% of the property value.
What other costs come on top of the down payment?
This is the part many buyers miss. Banks lend against the property value, but they do not usually finance taxes. Stamp duty and GST on a flat are the biggest extras. In Mumbai, the stamp duty is 6% including the metro cess, registration is 1% capped at ₹30,000 for properties above ₹30 lakh, and an under-construction non-affordable flat attracts 5% GST. Our guide to stamp duty and registration charges in Maharashtra explains these in detail.
Add to that legal fees, a brokerage if you use one, the home loan processing fee, and moving and interior costs. A buffer of a few lakh rupees is sensible.
What does a home loan for a 3 crore flat really need in cash?
Here is a worked example for an under-construction flat priced at ₹3 crore. The loan rate of 8.5% over 20 years is an assumption for illustration only. Please use your own bank’s quote.
Down payment | Down payment amount | Loan | Approx. EMI |
25% | ₹75,00,000 | ₹2,25,00,000 | ₹1,95,260 |
30% | ₹90,00,000 | ₹2,10,00,000 | ₹1,82,243 |
40% | ₹1,20,00,000 | ₹1,80,00,000 | ₹1,56,208 |
Illustrative: 8.5% interest, 20 years. Actual rates, tenure and fees vary by lender and borrower.
On top of the 25% down payment, the statutory costs are about ₹33.3 lakh (stamp duty ₹18 lakh, GST ₹15 lakh, registration ₹30,000). So your own funds come to about ₹1.08 crore, or around 36% of the price. For a ready flat with an OC, GST does not apply and the figure falls to about ₹93.3 lakh. Read more on why in our guide to what an occupancy certificate is.
Notice how each 5 percentage points of additional down payment reduces the EMI by roughly ₹6,000 to ₹7,000 in this example.
FROM THE SITE OFFICE: Most buyers ask us how much the bank will give. A better question is how much EMI you can carry for twenty years without stress. Start from that number and work backwards.
How much down payment for a house in India is right for you?
There is no single right answer, but these checks help.
- EMI comfort. A common rule of thumb is to keep all your EMIs within about 40% of monthly take-home income. Adjust for your family and expenses.
- Emergency fund. Keep several months of expenses aside after paying the down payment. Do not use it all.
- Interest versus returns. If your investments reliably beat the loan rate after tax, a smaller down payment may suit you. If not, a larger one saves interest.
- Job stability. A variable income argues for a larger cushion.
- Future needs. Keep room for school fees, travel and a second property if you plan one.
If you are still shortlisting, our home buying process guide helps you sequence the steps.
How does payment work on an under-construction home?
You do not pay the whole amount on day one. After the booking, payments follow construction stages, and the bank disburses the loan in the same stages. During this time, you generally pay interest only on the amount disbursed, often called pre-EMI. This is a real advantage, as cash needs are spread across the construction period, which for SKG projects currently runs through 2027 and into 2028.
Project | Started | Targeted completion (SKG) |
Anupama | 2025 | Early 2027 |
Shree Vaani | 2025 | Early 2027 |
Mehr, 14th Road, Chembur | 2025 | Early 2027 |
Crest Avenue, Thane (in collaboration with Moreshwara Realty) | 2026 | End of 2028 |
Chirantan, Kurla East | 2026 | End of 2029 |
One Uttam, Chembur East | End of 2025 | Early 2028 |
Targeted completion dates are SKG’s own. The legally binding outer date is the one registered on each project’s MahaRERA page, which can be later. Check both.
Remember that RERA limits the advance before a registered agreement to 10%. See our documents checklist and the bank partnerships SKG works with.
Are there tax benefits linked to your home purchase?
Under the old law, deductions under Section 80C covered principal repayment and stamp duty and registration, up to ₹1.5 lakh and only under the old tax regime. The Income-tax Act 2025, which applies from FY 2026-27, carries this forward as Section 123 with the same ₹1.5 lakh limit. Rules on interest deduction and the choice of regime are specific to your situation, so please confirm with a chartered accountant. The official Income Tax portal has the latest provisions.
Practical ways to prepare your down payment
- Start a dedicated savings plan at least a year before booking.
- Keep the funds liquid, so you can pay stage-wise on time.
- Get your loan eligibility checked before you shortlist, not after.
- Avoid taking new loans or large credit card debt just before applying.
- Compare the total cost, including processing fees, across two or three lenders.
Common mistakes to avoid
- Planning only for the down payment and forgetting stamp duty, GST and registration.
- Using every rupee of savings and leaving no emergency fund.
- Choosing the longest tenure and smallest down payment without checking total interest.
- Comparing lenders by rate alone and ignoring fees.
Frequently Asked Questions
What is the minimum down payment for a home loan in India?
It is 10% for loans up to ₹30 lakh, 20% for ₹30 to 75 lakh and 25% above ₹75 lakh, under RBI loan to value limits. Your bank may ask for more.
Is stamp duty included in the down payment?
No. Stamp duty, registration and GST are usually paid from your own funds, separately from the down payment.
Is 20% down payment enough for a Mumbai flat?
Only for loans between ₹30 and 75 lakh. For higher-value flats, the minimum is 25%.
Can I pay the down payment from my provident fund or a gift?
Rules vary by lender and by source. Ask your bank and keep documentation of the source of funds.
Does a bigger down payment reduce the interest rate?
Not automatically. It reduces the loan amount and total interest. Rates depend on your credit profile and the lender’s policy.
Sources and where to verify
- RBI: loan to value norms for housing loans, as reproduced by lenders
- IGR Maharashtra: stamp duty and registration
- GST portal: GST on residential flats
- Income Tax portal: Income-tax Act 2025 provisions
- EMI figures: standard EMI formula, 8.5% for 20 years, illustrative