100% Home Loan: Myth vs. Reality as per RBI Rules

• RBI regulations prevent banks from offering 100% home loans; typically, 75-90% of property value is financed.
• Buyers must arrange the remaining 10-25% as a down payment, which is crucial for securing a home loan.
• Alternatives like personal loans or NBFCs can cover the down payment gap, but often come with higher interest rates and EMIs.
• A down payment assures banks of shared risk, reduces EMI burden, and lowers overall interest paid.
• Consider savings, fixed deposits, gold loans, or government schemes like PMAY to manage down payment requirements.

Why It Matters: 100% home loans are not possible due to RBI rules; a down payment is mandatory for home purchase.