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Glossary › Down Payment

What is Down Payment?

The upfront portion of a purchase you pay yourself, with the rest financed by a loan.

The down payment reduces the loan amount, your EMI, and total interest, and often improves your rate. Lenders set a minimum (e.g. 10–20%); transaction costs are usually extra.

Example

20% down on a ₹50,00,000 home is ₹10,00,000.

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