Quick answer: For a home in Hyderabad, plan a down payment of 10–25% of the price, depending on the loan size, plus about 7.5% for stamp duty and registration. On an ₹80 lakh flat that is about ₹22 lakh upfront. Savings, EPF, family gifts, sold investments and a stage-wise payment plan are the main ways to arrange it.
By Vijay Arjun V (B.Pharm, PGDM): authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Funding limits checked on lichousing.com on 17 October 2026.
How much down payment do you need?
LIC HFL funds up to 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh (lichousing.com, 17 October 2026). The rest is your down payment. Our calculation for ready flats:
| Property price | Loan (max) | Down payment | Stamp duty and registration (about 7.5%) | Total upfront |
|---|---|---|---|---|
| ₹33 lakh | ₹29.7 lakh (90%) | ₹3.3 lakh | ₹2.5 lakh | ₹5.8 lakh |
| ₹40 lakh | ₹32 lakh (80%) | ₹8 lakh | ₹3 lakh | ₹11 lakh |
| ₹80 lakh | ₹64 lakh (80%) | ₹16 lakh | ₹6 lakh | ₹22 lakh |
| ₹1.2 crore | ₹90 lakh (75%) | ₹30 lakh | ₹9 lakh | ₹39 lakh |
An under-construction flat also carries GST, and you may pay for parking, amenities and interiors. See the full cost sheet or use the down payment calculator.
7 ways to arrange your down payment
1. Savings and fixed deposits
The simplest source. Breaking a fixed deposit early usually costs a little interest, so check the penalty and break only what you need. Keep an emergency fund of a few months’ expenses outside the down payment.
2. Your EPF balance
EPF allows withdrawals for buying or building a house. In October 2025, EPFO merged its withdrawal rules into three categories, one of them housing, and members must keep at least 25% of their contribution balance (The Hindu, via Drishti IAS, 24 October 2025). Check what you can withdraw on the EPFO member portal.
3. Gifts from family
Parents or other close relatives can gift part of the down payment. Keep a gift letter and a bank trail, and ask your tax adviser how the gift is treated. The lender will want to see where the money came from.
4. Selling investments or gold
Mutual funds, shares or gold can fund the down payment. Plan the sale early: capital gains tax and exit loads can reduce what you receive.
5. Pick a price within a better funding band
Funding drops from 80% to 75% once the loan crosses ₹75 lakh. A flat just below that line needs a smaller share from you. For lower budgets, loans up to ₹30 lakh are funded up to 90%.
6. Pay in stages on an under-construction flat
With a construction-linked plan, you pay your share as the building rises rather than all at once, giving you time to save. Buy only in projects with building approval and RERA registration: how to check a project on Telangana RERA, and prefer LIC HFL approved projects.
7. Add a co-applicant
A working spouse or parent as co-applicant raises the loan you qualify for, so you can borrow up to the funding limit instead of being capped by one income. It doesn’t lower the minimum down payment. See joint home loan with spouse.
What should you avoid?
- A personal loan for the down payment. Its EMI counts against your home loan eligibility and costs more. See top-up vs personal loan for how the rates compare.
- Cash payments. Pay through your bank so every payment is recorded against the property.
- Paying an advance before the papers are checked. We check them free.
Frequently asked questions
What is the minimum down payment for a home loan?
With LIC HFL, 10% of the value for loans up to ₹30 lakh, 20% for ₹30–75 lakh and 25% above ₹75 lakh, plus stamp duty and registration, which the loan does not cover.
Can the home loan cover stamp duty?
No. Stamp duty and registration, about 7.5% of the value in Telangana, come from your own funds.
Does a bigger down payment get me a lower rate?
LIC HFL’s rate depends on your CIBIL score and loan slab, not the down payment. A bigger down payment does lower your EMI and total interest. See LIC HFL rates by CIBIL score.
I’m buying for the first time. Where do I start?
Start with your budget and eligibility: read the first-time home buyer guide.
Sources: LIC HFL funding limits on lichousing.com, checked 17 October 2026; EPF withdrawal changes as reported by Drishti IAS (24 October 2025). Rupee figures are our calculation.
Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.