Down Payment 'Down Payment of a home loan' might get you goose bumps, but it is actually not that scary. Your down payment can reduce your EMI which will reduce your burden in future. Down payment is nothing but the cash that has to pay for the home loan from your pocket. Usually banks fund up to 80 percent of the value of a home. For instance, if you buy a home worth 30 lakh, the bank will fund 80 percent of that amount i.e. 24 lakh, which means the remaining 6 lakh has to go from your pocket. The higher your down payment, lesser is your EMI. You can make high down payments through savings. There thousands of banks these days that provide loan for making down payments itself. Or else there are several easy ways to raise debts. But raising debt to repay another debt should better be avoided.