Down Payment is the initial amount paid upfront when purchasing an asset (like a house or car), while the remaining amount is financed through a loan.
A Down Payment reduces the total loan amount required from a lender. It is typically a percentage of the asset’s total cost and is paid by the buyer from their own funds.
Higher down payments usually result in lower loan amounts, lower EMIs, and better interest rates.
"If a house costs ₹50 lakh and you pay ₹10 lakh upfront, the remaining ₹40 lakh is financed through a loan."