{"id":1088629,"date":"2026-06-30T10:03:25","date_gmt":"2026-06-30T04:33:25","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=1088629"},"modified":"2026-06-30T10:03:25","modified_gmt":"2026-06-30T04:33:25","slug":"how-much-down-payment-is-required-to-buy-a-flat","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/how-much-down-payment-is-required-to-buy-a-flat","title":{"rendered":"How Much Down Payment is Required to Buy a Flat in India (2026)"},"content":{"rendered":"

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How much down payment is required to buy a flat: the RBI framework<\/h2>\n

The RBI does not tell you how much down payment to save. It tells banks how much they can lend. The rest, by definition, is your down payment. The current loan-to-value framework as of June 2026:<\/p>\n\n\n\n\n\n\n\n
Property value<\/th>\nMax LTV (bank can lend)<\/th>\nMinimum down payment<\/th>\nOn a property at this price<\/th>\n<\/tr>\n<\/thead>\n
Up to Rs 30 lakh<\/td>\n90%<\/td>\n10%<\/td>\nRs 3 lakh<\/td>\n<\/tr>\n
Rs 30 lakh to Rs 75 lakh<\/td>\n80%<\/td>\n20%<\/td>\nRs 10 lakh on a Rs 50L flat<\/td>\n<\/tr>\n
Above Rs 75 lakh<\/td>\n75%<\/td>\n25%<\/td>\nRs 25 lakh on a Rs 1cr flat<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Three things are worth noting about this table. First, individual lenders can apply stricter LTVs than the RBI maximum, particularly for older properties, resale flats, and projects not on the bank’s approved list. Second, the down payment is calculated on the property value as assessed by the bank’s empanelled valuer, not on the price you agreed with the seller. If the valuer assesses the flat at Rs 85 lakh and you agreed Rs 90 lakh with the seller, the bank lends 75 percent of Rs 85 lakh (Rs 63.75 lakh), and you fund the Rs 26.25 lakh gap plus the Rs 5 lakh assessment difference. Third, the LTV slab is applied to the entire loan amount, not to the portion above the threshold. A Rs 76 lakh loan sits in the 75 percent LTV band across its entirety, not 80 percent on the first Rs 75 lakh and 75 percent on the remaining Rs 1 lakh.<\/p>\n

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The number that surprises most buyers.<\/strong> The down payment is not the only cash required at registration. Stamp duty, registration charges, GST (for under-construction), and maintenance deposit add 9 to 14 percent on top of the property value. On a Rs 1 crore flat in Maharashtra, that adds Rs 6 to 7 lakh. Plan for the total, not just the down payment.<\/p>\n<\/div>\n

Down payment for a 1 crore flat: the full cash required<\/h2>\n

Taking Maharashtra as the illustration because it has the highest combined transaction taxes:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Cost component<\/th>\nRate<\/th>\nAmount on Rs 1 crore flat<\/th>\n<\/tr>\n<\/thead>\n
Bank down payment (25% of Rs 1cr)<\/td>\n25%<\/td>\nRs 25,00,000<\/td>\n<\/tr>\n
Stamp duty (Maharashtra, male buyer)<\/td>\n5%<\/td>\nRs 5,00,000<\/td>\n<\/tr>\n
Registration charges<\/td>\n1%<\/td>\nRs 1,00,000<\/td>\n<\/tr>\n
GST (if under-construction)<\/td>\n5%<\/td>\nRs 5,00,000<\/td>\n<\/tr>\n
Home loan processing fee<\/td>\n~0.5%<\/td>\nRs 37,500 (on Rs 75L loan)<\/td>\n<\/tr>\n
Maintenance deposit<\/td>\nFlat<\/td>\nRs 1,00,000 to Rs 2,00,000<\/td>\n<\/tr>\n
Total all-in cash (under-construction)<\/strong><\/td>\n\u00a0<\/td>\nRs 37.4L to Rs 38.4L<\/strong><\/td>\n<\/tr>\n
Total all-in cash (ready-to-move, no GST)<\/strong><\/td>\n\u00a0<\/td>\nRs 32.4L to Rs 33.4L<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The GST line is the most misunderstood. Ready-to-move-in flats with a valid Occupancy Certificate are exempt from GST. Under-construction flats attract 5 percent on the full consideration including PLC, parking, and club membership. On a Rs 1 crore total cost sheet, the GST alone is Rs 5 lakh. That is the single strongest financial argument for buying a ready-to-move flat over an under-construction one at the same price point.<\/p>\n

Our hidden costs when buying a flat guide breaks down every cost component including PLC, floor rise, club membership, and home loan processing charges.<\/p>\n

How much down payment is required to buy a flat across popular price points<\/h2>\n\n\n\n\n\n\n\n\n\n\n
Property value<\/th>\nDown payment only<\/th>\nStamp + reg (Maharashtra)<\/th>\nGST (if UC)<\/th>\nTotal cash (UC)<\/th>\n<\/tr>\n<\/thead>\n
Rs 30 lakh<\/td>\nRs 3L (10%)<\/td>\nRs 1.8L<\/td>\nRs 1.5L<\/td>\n~Rs 7L<\/td>\n<\/tr>\n
Rs 50 lakh<\/td>\nRs 10L (20%)<\/td>\nRs 3L<\/td>\nRs 2.5L<\/td>\n~Rs 16.5L<\/td>\n<\/tr>\n
Rs 75 lakh<\/td>\nRs 18.75L (25%)<\/td>\nRs 4.5L<\/td>\nRs 3.75L<\/td>\n~Rs 27.5L<\/td>\n<\/tr>\n
Rs 1 crore<\/td>\nRs 25L (25%)<\/td>\nRs 6L<\/td>\nRs 5L<\/td>\n~Rs 37L<\/td>\n<\/tr>\n
Rs 1.5 crore<\/td>\nRs 37.5L (25%)<\/td>\nRs 9L<\/td>\nRs 7.5L<\/td>\n~Rs 55L<\/td>\n<\/tr>\n
Rs 2 crore<\/td>\nRs 50L (25%)<\/td>\nRs 12L<\/td>\nRs 10L<\/td>\n~Rs 73L<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The four funding sources banks accept for down payment<\/h2>\n

Banks verify the source of your down payment. It is not enough to show the funds are in your account. They need to know where the funds came from, because undisclosed debt used as a down payment creates a hidden FOIR problem that can trigger a loan rejection after approval.<\/p>\n

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  • Personal savings.<\/strong> The cleanest source. Bank statements showing the funds accumulating over time are the standard proof. Sudden large deposits in the months before application attract scrutiny.<\/li>\n
  • EPF withdrawal.<\/strong> EPFO allows withdrawal of up to 90 percent of the provident fund balance for home purchase, after 5 years of EPF membership. The amount is transferred directly from EPFO to the bank account. This is the most underused source of down payment funds for salaried buyers.<\/li>\n
  • Liquidation of investments.<\/strong> Fixed deposits, mutual fund redemptions, equity sale proceeds, insurance surrenders. Each must be documented with the liquidation record. Long-term capital gains from equity or mutual funds held over 12 months qualify for the 10 percent LTCG rate (no indexation above Rs 1 lakh per year) post the Finance Act 2018.<\/li>\n
  • Gift from immediate family.<\/strong> Parents, spouse, siblings. Must be documented as a gift (with a gift deed or gift letter) and must flow through banking channels, never cash. Some banks require a gift letter with the relationship stated and the donor confirming no expectation of repayment.<\/li>\n<\/ul>\n

    One source the bank will not accept: a personal loan from another lender or a credit card cash advance. Banks cross-check your liabilities at the time of home loan processing through the credit bureau. A personal loan taken six months before the home loan application shows up as a fresh EMI obligation, reduces your FOIR, and can reverse the loan sanction. Never fund the down payment with debt.<\/p>\n

    PMAY and down payment: how the subsidy reduces the effective cash required<\/h2>\n

    The Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme works differently from what most buyers expect. It does not directly reduce the down payment. It reduces the home loan interest rate for eligible borrowers, which lowers the EMI and therefore reduces the effective cost of the loan over its tenure. The net present value of the subsidy is then credited to your loan account, reducing the outstanding principal.<\/p>\n

    MIG-I borrowers (household income Rs 6 to 12 lakh per annum) receive a 4 percent interest subsidy on loans up to Rs 9 lakh, with a net present value benefit of approximately Rs 2.35 lakh. MIG-II borrowers (income Rs 12 to 18 lakh per annum) receive a 3 percent subsidy on loans up to Rs 12 lakh, with a net present value benefit of approximately Rs 2.30 lakh.<\/p>\n

    Confirm current PMAY extension status with your bank before applying, as subsidy availability is subject to annual scheme renewals. Check with your preferred lender’s PMAY desk at the time of application.<\/p>\n

    A Chennai couple’s four-year down payment plan that worked<\/h2>\n

    This is the kind of planning conversation that happens three to four years before the purchase, not three months before. But it is the conversation that makes the purchase possible at all.<\/p>\n

    Pradeep and Ananya were both 27 when they decided they wanted a 2 BHK in Sholinganallur, Chennai, by the time their first child turned two. That gave them four years. The flat they had in mind was priced around Rs 65 lakh. Under-construction. Down payment at 80 percent LTV would be Rs 13 lakh. Stamp duty in Tamil Nadu is 7 percent: Rs 4.55 lakh. Registration 1 percent: Rs 65,000. GST (under-construction): Rs 3.25 lakh. Maintenance deposit: Rs 75,000. Total all-in: Rs 22.2 lakh. Their combined savings at the time: Rs 3.8 lakh.<\/p>\n

    The advisor at our Sholinganallur office mapped a four-year plan. A dedicated SIP of Rs 18,000 per month, split between a liquid fund (for the stamp duty and GST, which needed to be available quickly) and a balanced advantage fund (for the down payment, with a four-year horizon allowing equity allocation). Pradeep’s EPF balance would be Rs 5.5 lakh in four years, covering the maintenance deposit and most of the GST. Annual bonuses channeled to the liquid fund. No personal loans during the four-year period to protect their future FOIR.<\/p>\n

    They bought in the third quarter of 2026, four months ahead of schedule. Their liquid fund had Rs 9.5 lakh (stamp duty, registration, GST). Their balanced fund had Rs 11.8 lakh (down payment). Their EPF withdrawal was Rs 5.1 lakh. Total available: Rs 26.4 lakh. Needed: Rs 22.2 lakh. They moved in with Rs 4.2 lakh in savings intact.<\/p>\n

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    “We thought we needed to save just the down payment. The Square Yards advisor showed us the full Rs 22 lakh picture including stamp duty, GST, and the maintenance deposit. We had been planning for Rs 13 lakh. The four-year plan with the EPF map was the only reason we got there ahead of schedule. The EPF part is what surprised us the most. Four years of contributions and we did not even know it was available for this.”<\/p>\n