What is Down Payment in Real Estate?
RBI Guidelines on Down Payment
The Reserve Bank of India sets the Loan-to-Value (LTV) ratio, which determines the maximum loan amount a bank can offer relative to the property value. As of 2026:
- Property up to ₹30 Lakh: LTV up to 90% (minimum 10% down payment)
- Property ₹30-75 Lakh: LTV up to 80% (minimum 20% down payment)
- Property above ₹75 Lakh: LTV up to 75% (minimum 25% down payment)
For a luxury apartment like the Fab Luxe 3 BHK at Price On Requestore, you would need to arrange at least ₹74 Lakh (25%) as a down payment, with the bank financing up to ₹2.22 Crore. Some banks may offer up to 80% LTV for high-value properties depending on your income profile and credit score.
What the Down Payment Covers
Your down payment typically goes toward the booking amount and initial installments. In a construction-linked plan, the first 20% (booking + agreement execution) usually comes from your own funds before the bank starts disbursing the loan.
Tips to Arrange Your Down Payment
- Savings and fixed deposits: The most common source for down payments
- Selling existing property: If you are upgrading, the sale proceeds can fund your down payment
- Mutual fund or stock liquidation: Plan redemptions 6-12 months in advance to avoid timing market dips
- Family support: Gift deeds from parents or relatives are accepted by banks as valid down payment sources
- EPF withdrawal: PF funds can be used for down payment after 5 years of service
A higher down payment means a lower loan amount, which directly reduces your EMI and total interest outflow. For complete pricing and financial planning, see our Fab Luxe price list.