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Ways to Save For a Down Payment

Posted by India Kutir on April 24, 2023

Saving for a down payment is an essential step towards buying a house in India. A down payment is a percentage of the property’s value that the buyer has to pay upfront, and it typically ranges from 10% to 20% of the property’s value. Saving for a down payment can be challenging, but there are ways to make the process easier. Let’s look at some ways to save for a down payment in India.

Create a Budget

The first step towards saving for a down payment is to create a budget. A budget will help you track your expenses and identify areas where you can cut back on unnecessary spending. This can include reducing eating out, entertainment expenses, and other non-essential items. Allocate a portion of your income towards saving for a down payment, and stick to it.

Open a Dedicated Savings Account

Open a dedicated savings account for your down payment and automate your savings. This means that a portion of your salary can be automatically transferred to your down payment account each month. This helps you save regularly without having to think about it.

Increase Your Income

If you have the option to increase your income, then do it. This can include taking on additional work, freelancing, or starting a side business. The additional income can be directed towards your down payment savings.

Consider a Personal Loan

A personal loan can be an option if you need to increase your down payment savings quickly. However, personal loans come with high-interest rates, so be sure to weigh the pros and cons before taking out a loan.

Take Advantage of Government Schemes

The government of India has several schemes to help first-time homebuyers save for a down payment. These include the Pradhan Mantri Awas Yojana (PMAY) and the Credit-Linked Subsidy Scheme (CLSS). These schemes provide subsidies and tax benefits to eligible homebuyers, making it easier to save for a down payment.

Sell Unnecessary Assets

You may have assets that you do not need, such as an extra vehicle or unused jewelry. Selling these assets can provide you with additional funds to save towards your down payment.

Cut Down on Rent Expenses

If you are renting a property, consider moving to a more affordable house or sharing accommodation with roommates. This can help you save on rent expenses and increase your down payment savings.


Saving for a down payment can seem daunting, but it is achievable. By creating a budget, opening a dedicated savings account, increasing your income, considering personal loans, taking advantage of government schemes, selling unnecessary assets, and cutting down on rent expenses, you can save for your down payment faster. Remember to start early and be consistent in your savings approach to reach your down payment goal.

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