Margin Money
What Margin Money means
The borrower's own contribution towards the purchase price of an asset — the gap between the asset's cost and the loan amount. Also called down payment or own contribution.
Example
To buy a ₹50 lakh car with a 90% LTV car loan, you pay ₹5 lakh as margin money from your savings; the bank funds ₹45 lakh.
This definition is based on RBI – Master Direction on Housing Finance ↗. We link every figure to its primary source — see our data methodology.
Related loan cost terms
- Processing FeeA one-time, non-refundable charge levied by the lender to cover the administrative cost of evaluating and processing a loan application; typically 0.25%–2% of the loan amount.
- Subvention SchemeA builder-bank arrangement where the developer pays the home loan interest on behalf of the buyer until property possession, marketed as "no EMI until possession". The cost is typically embedded in a higher property price.