Total property/asset price
Annual reducing balance rate
Repayment period in years
Monthly EMI
₹0
Total Interest
₹0
Total Payment
₹0
Year-wise Amortization
| Year | Principal | Interest | Total Paid | Balance |
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How Down Payment Affects EMI
A down payment is the initial upfront amount paid from your own funds when purchasing an asset. The loan amount (and hence your EMI) is calculated on the remaining cost after the down payment.
- Home loans: RBI mandates minimum 10–25% down payment depending on loan amount
- Car loans: Most lenders require 10–20% down payment
- Higher down payment → lower EMI, lower total interest, faster loan closure
Frequently Asked Questions
What is the minimum down payment for a home loan?
As per RBI LTV guidelines: Up to ₹30L — max 90% financing (10% down); ₹30L–₹75L — max 80% (20% down); Above ₹75L — max 75% (25% down).
Should I put a larger down payment?
Yes, if feasible. A larger down payment reduces EMI, saves interest, and may get you a better interest rate from the bank. Avoid liquidating emergency funds though.