No 100% Home Loan: RBI Rules Mandate Down Payment for Property Purchase
Personal Finance
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News18•21-01-2026, 16:10
No 100% Home Loan: RBI Rules Mandate Down Payment for Property Purchase
- •RBI rules prevent banks from offering 100% home loans; a down payment is always required.
- •Loan to Value (LTV) ratios vary: 90% for properties up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% for properties above ₹75 lakh.
- •Improve your chances for a higher loan amount by maintaining a good credit score (750+) and applying with a co-applicant.
- •Pradhan Mantri Awas Yojana (PMAY) offers credit-linked subsidies for EWS/LIG categories, reducing the effective down payment burden.
- •Making a larger down payment reduces the loan amount, interest paid, and EMI burden, offering financial benefits.
Why It Matters: RBI rules mandate a down payment for all home loans; 100% financing is not possible in India.
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