The formula: down payment = home price × (1 − LTV%)
For a ₹50 lakh home with an 80% LTV offer, the lender finances 80% of the price (₹40,00,000), leaving a down payment of ₹50,00,000 − ₹40,00,000 = ₹10,00,000 — or directly, ₹50,00,000 × (1 − 80%) = ₹10,00,000.
A lower LTV means a bigger down payment
The same ₹50 lakh home at a 70% LTV instead means the lender finances only ₹35,00,000, so the down payment rises to ₹15,00,000 — ₹5,00,000 more than the 80% LTV scenario, purely from a 10-percentage-point drop in the financed share.
RBI's LTV ceiling scales with home price
RBI caps the maximum LTV a lender can offer, and that cap itself depends on the home price: up to 90% for homes priced ₹30 lakh or below, 80% for ₹30-75 lakh, and 75% above ₹75 lakh. For an ₹80 lakh home at the 75% ceiling that applies to it, the loan amount is ₹60,00,000 and the down payment is ₹20,00,000.
Why this matters before house-hunting
Because the maximum LTV — and so the minimum down payment — depends on the home's price bracket, the same percentage down payment plan doesn't scale evenly across price ranges. Knowing the applicable LTV ceiling for a target price range in advance avoids being surprised by a larger-than-expected required down payment.