How to purchase a home with zero down payment on your Home Loan Bajaj Finserv

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How to purchase a home with zero down payment on your Home Loan Bajaj Finserv

  • Highlights

  • Receive interest subsidy under the PMAY scheme

  • Use funds from a personal loan as home loan down payment

  • Borrow money from friends or family to make the down payment

  • Pledge your investments or use the matured funds to raise money

The down payment forms an important part of a home loan, where you personally finance 5% to 30% of the value of the home and get the remainder from your lender. Most lenders ask for a 20% home loan down payment amount as your contribution for the purchase of an asset like a home or property. The more down payment you make, the less is your repayment obligation. Check how making a down payment reduces your EMIs by using a home loan EMI calculator. In some cases, you may find it tough to raise funds for a down payment, given that you have to prepare for several other costs of the home loan and purchase, be it your broker’s fees,  stamp duty, registration fees, and loan processing fees.

The following strategy will help you raise funds for purchasing a home without stressing your finances.

Opt for the PMAY scheme

The Pradhan Mantri Awas Yojana was launched by the Narendra Modi government in 2015 to provide affordable housing to the Indian population. PMAY aims to provide affordable housing to all by 2022, and if you are a beneficiary of this scheme you receive an interest rate subsidy of up to 6.5% on your housing loan. Not only will this make repayment of your home loan easy, but also enables you to save funds in order to make a home loan down payment. Check the eligibility parameters and other terms of this scheme to avail the subsidy.

Alternatively, there are various ways in which you can organise funds to pay for your down payment.

1. Opt for an unsecured loan

If you lack the funds for making a home loan down payment, there is no better option than to avail an unsecured loan. You can easily approach a lender and apply for a collateral-free loan on low interest rate if you have a good credit score. You can avail a Personal Loan from Bajaj Finserv to get a loan of up to Rs.25 lakh on a repayment tenor of 12 to 60 months.

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2. Borrow from friends or relatives

In case you feel burdened by the thought of opting for two loans at one go, you can consider the option of raising funds for your home loan down payment by borrowing money from friends or relatives. This enables you to raise finance instantly, which you can repay comfortably to your friend or relative on a monthly basis as is suitable for both of you. The best part about taking loan from someone on a personal level is that you are not obliged to pay anything extra as interest on what you borrow. Also skipping a month of EMI will not make you draw a penalty. So the terms of repayment are naturally flexible based on mutual understanding.

3. Raise funds from your investments

Investments can be a valuable source of income and finance. If you have a thriving investment portfolio you can easily raise funds to pay your down payment. Sell some shares to raise funds if you the market is performing well or simply pledge your FDs, mutual fund, and shares to raise a low-interest loan against securities. Pledging your securities allows you to access a high amount sanction on nominal interest, which on the one hand will fund your down payment requirement and, on the other, allow your investment to continue earning.

Once you raise funds for the home loan down payment search for a good lender to avail the loan. For example, when you opt for a Bajaj Finserv Home Loan, you get a high sanction of up to Rs.10 crore on nominal interest. You will also enjoy additional benefits such as a top-up loan and a 3 EMI holiday.

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