A Bengaluru buyer eyeing a one crore flat assumed a home loan would cover almost all of it, and budgeted a small down payment. The bank's offer told a different story. On a property above 75 lakh, the loan was capped at 75 percent of the value, so he needed 25 lakh from his own pocket as down payment, and that was before stamp duty and registration, which the loan would not touch at all. The gap between what he thought he needed to save and what he actually needed was the difference between closing the deal and walking away.

The short answer. The RBI limits how much of a property's value a home loan can fund through the loan to value ratio, and the ceiling steps down as the price rises: up to 90 percent for property up to 30 lakh, up to 80 percent between 30 and 75 lakh, and up to 75 percent above 75 lakh. That means a minimum down payment of 10, 20 or 25 percent respectively. Crucially, stamp duty and registration are excluded from this calculation, so you fund them separately from your own savings. The trade off to plan for is that on a larger Bengaluru flat, your upfront cash is a bigger down payment plus the full registration cost on top.

The down payment is where many home purchases stall, because buyers underestimate how much cash they must bring. This guide explains the LTV limits, how much you must put down, why stamp duty sits outside the loan, and how to plan your upfront funds properly, so the size of your savings, not an optimistic assumption, decides what you can buy.

What is the loan to value ratio and why does it matter?

The loan to value ratio, or LTV, is the share of a property's value that a lender can finance, and the RBI sets ceilings on it. Because the loan is capped at a percentage of the value, the rest is your down payment, funded from your own money. LTV matters because it directly decides how much cash you need before a lender will complete your loan, and getting it wrong is one of the most common reasons a buyer is caught short at the last stage.

The RBI regulates home loan funding through these LTV limits precisely to balance access to credit with financial stability. For a buyer the effect is practical rather than theoretical: the LTV band your property falls into fixes your minimum down payment, so knowing it early lets you plan your savings around a real number instead of an optimistic guess about how much the bank will lend.

How much down payment must I make?

Your minimum down payment depends on the property value band: 10 percent for property up to 30 lakh, 20 percent between 30 and 75 lakh, and 25 percent above 75 lakh. These follow directly from the LTV ceilings of 90, 80 and 75 percent. So a 50 lakh flat needs at least 10 lakh down, while a one crore flat needs at least 25 lakh, a substantial jump that reflects the lower LTV allowed on higher value property.

These are minimums, not targets. A larger down payment reduces your loan, your EMI and your total interest, so buyers who can put down more than the minimum often choose to. For how the loan size then translates into a monthly payment, our guide to home loan EMI at the current repo rate shows what different loan amounts cost each month and over the full tenure.

Why can't the loan cover stamp duty and registration?

Stamp duty and registration cannot be added to your home loan because RBI guidelines require banks to exclude these statutory charges from the loan to value calculation. The LTV applies to the property value, not to the transaction costs, so the stamp duty and registration fall outside the financed amount entirely. You must fund them from your own savings, on top of your down payment.

This is the trap that catches buyers who budget only for the down payment. In Bengaluru, where stamp duty and registration run to about 7.6 percent of the value, these charges are a large sum in their own right. Our guide to Bengaluru stamp duty and registration charges sets out the full cost, and the key point here is that this amount sits entirely outside your loan, so plan for it as a separate line of upfront cash.

What is my true upfront cash requirement?

Your true upfront cash is the down payment plus the stamp duty and registration plus any other costs the loan does not cover. On a one crore flat above the 75 lakh band, that is at least 25 lakh as down payment and roughly seven and a half lakh in stamp duty and registration, so more than 32 lakh before you count smaller costs. Budgeting only the down payment, and forgetting the statutory charges, is how buyers find themselves short just as the deal is meant to close.

The disciplined approach is to add up every upfront cost the loan will not fund and hold that total ready before you commit. That means the correct down payment for your property's LTV band, the stamp duty and registration in full, and a buffer for incidentals. A buyer who plans the whole upfront figure, rather than just the down payment, negotiates and closes from a position of certainty rather than scrambling for funds at the counter. It also protects you from having to borrow expensively elsewhere at the last minute to bridge a gap you could have foreseen months earlier.

How can I plan my down payment well?

Plan by first identifying which LTV band your target property falls into, then setting aside the matching down payment plus the full statutory charges well before you sign. Knowing the band, up to 30 lakh, 30 to 75 lakh, or above 75 lakh, tells you whether you need 10, 20 or 25 percent down. Add the stamp duty and registration, and you have your real savings target, which you can then build towards deliberately.

Where you can, putting down more than the minimum lowers your borrowing and its cost, but never at the expense of leaving yourself without a cushion for the statutory charges and for life after the purchase. The goal is a down payment that is comfortable, a full provision for the costs outside the loan, and a loan sized so the EMI fits your budget. Balancing these, rather than maximising the loan, is how a purchase stays sustainable long after the excitement of the keys has faded.

What down payment mistakes do buyers make?

The common mistakes are assuming the loan covers almost everything, forgetting that stamp duty and registration sit outside it, and misjudging which LTV band a property falls into. Each leaves a buyer short of cash at the worst moment. Overestimating the loan understates the down payment. Ignoring the statutory charges understates the upfront cash further. And assuming a high LTV on a higher value property, where the ceiling is lower, compounds the gap.

Avoiding them is a matter of arithmetic done early. Identify the LTV band, calculate the minimum down payment, add the full stamp duty and registration, and hold that total before you commit. For most Bengaluru buyers the upfront cash is larger than they first expect, so planning it precisely, rather than optimistically, is what turns a desirable flat into a purchase you can actually complete.

Home loan LTV and down payment at a glance

A down payment checklist for Bengaluru buyers

1. Identify which LTV band your target property falls into by its value.
2. Set the minimum down payment at 10, 20 or 25 percent to match the band.
3. Remember that stamp duty and registration are excluded from the loan.
4. Add the full stamp duty and registration to your upfront cash requirement.
5. Total the down payment and statutory charges to find your real savings target.
6. Consider putting down more than the minimum to reduce your loan and EMI.
7. Keep a buffer for incidentals and for expenses after the purchase.

Frequently asked questions

How much down payment do I need for a home loan?

Your minimum down payment depends on the property value: 10 percent up to 30 lakh, 20 percent between 30 and 75 lakh, and 25 percent above 75 lakh. These follow from the RBI loan to value ceilings of 90, 80 and 75 percent. So a one crore flat needs at least 25 lakh down, before stamp duty and registration.

What is the loan to value ratio for a home loan?

The loan to value ratio is the share of a property's value a lender can finance, capped by the RBI. It is up to 90 percent for property up to 30 lakh, up to 80 percent between 30 and 75 lakh, and up to 75 percent above 75 lakh. The remaining portion is your down payment, funded from your own savings.

Can my home loan include stamp duty and registration?

No. RBI guidelines require banks to exclude stamp duty and registration charges from the loan to value calculation, so the loan cannot fund them. You must pay these statutory charges from your own savings, on top of the down payment. In Bengaluru they run to about 7.6 percent of the value, so plan for them separately.

What is my total upfront cash for buying a flat?

Your total upfront cash is the down payment plus the stamp duty and registration plus incidentals, since the loan funds only a capped share of the property value. On a one crore flat above the 75 lakh band, that is at least 25 lakh down plus roughly seven and a half lakh in charges, so more than 32 lakh before smaller costs.

Last updated 14 August 2026. PropNewz Team.