Home Loan Eligibility Calculator

Lenders require a down payment to reduce their financial risk and ensure that borrowers have a personal investment in the property. Since lenders generally finance only a portion of the property's value, the borrower must contribute the remaining amount upfront.

For example, if a property costs Rs. 50 lakh and the lender finances Rs. 40 lakh, the borrower needs to arrange Rs. 10 lakh as a down payment. A higher down payment reduces the loan amount, which can lead to lower EMIs and reduced interest costs over the loan tenure. It also lowers the loan-to-value ratio and may strengthen the borrower's loan application.

Loan-to-Value (LTV) ratio determines the maximum portion of a property’s value that can be financed through a home loan. The remaining amount is paid as the down payment. The table below shows the maximum LTV that can be offered to a borrower based on the property value.

For example, for a Rs. 1 crore property, a 75% LTV allows a loan of up to Rs. 75 lakh, requiring a minimum down payment of Rs. 25 lakh.

For example, a Rs. 40 lakh loan at 8.5% interest for 30 years may have an EMI of around Rs. 30,757. If you borrow Rs. 30 lakh instead, the EMI may come down to around Rs. 23,067.