What is the Deposit for a Home Loan?

The minimum deposit for a house loan refers to the initial amount of money that a borrower is required to contribute towards the purchase of a home. It represents the borrower's equity in the property and is expressed as a percentage of the property's purchase price. The deposit required for home loan might vary from one bank or lender to another but usually it is 20% of the property value.

What Is The Minimum Deposit For House Loan In HDFC?

As far as I am aware, HDFC Bank allows the customer to pay 10-25% of the total property value as his/her contribution based on the loan amount. That means you can get 75-90% of the property value from this home loan. 

In fact, the minimum deposit for a home loan at ICICI is stated to be 20% but it is not compulsory. Your down payment amount also depends on your repayment credibility so its best to visit the bank and ask the officials about it.

However, do remember that the RBI has stated that lenders in India can provide 80% of the property value as a home loan for loans above 30 lakhs. So I hope you have a clear idea about what the minimum deposit is for a house loan.

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I took a house loan once. I found this way to achieve my desire for home ownership. You can get further to your desire if the bank provides 70% to 85% of the funds for the property's purchase price. So let me tell you what is the deposit for a home loan.

What is the minimum deposit for a home loan?

The majority of creditors only give 90% of the property's worth. Hence the minimum deposit for a home loan can be 10%. Now you know how much deposit for home loan. This sum could change based on how much a property is worth. Therefore, the down payment will increase in line with your property's beyond-average valuation. If you don't have enough money in your bank account, this could become a little stressful. This guides you about what deposit do I need for a home loan.

How to reduce the home loan deposit amount?

1) Request money from your family or friends

Even though you may view this as your final choice, it is actually not a dumb choice. The best aspect is that there are no interest charges associated with the loan amount. Additionally, there are no late penalty penalties to think about, even if your payments are delayed.

2) Borrow money from your company

Many businesses provide loans to their staff members. Obviously, this may vary depending on a number of variables, such as the employee's duration and relationship with the employer, to name a couple. But, these loans are simple to apply for and involve little paperwork.

3) Access the money in your investments

Anytime you need a low-interest loan, you can use your financial assets or mutual funds as security. You'll be able to set up the necessary funds in this manner to pay the down payment. The strain of paying back the loan won't be as great. Because secured loans have lower rates of interest than unsecured loans.

4) Apply for an unsecured loan

You could also ask an institution or bank for an unsecured loan if you don't have sufficient money to cover the remaining balance. If your property is worth Rs.40 lakh and you have previously secured a house loan of Rs.36 lakh. The additional Rs.4 lakh can be covered by taking out a new loan.

This is all I had to say about what is the deposit for a home loan.