Guide · RSU and ESOP holders

RSU and ESOP to flat: the plan

For anyone with vested RSUs or ESOPs who is looking at a flat in Bengaluru.

1Sell more or borrow more
2The cash the loan won't pay
3Your payout date, worked back to booking day

All examples in this guide are illustrative. Your figures will differ. This is not advice to sell, hold or buy.

How to use this guide

Read the three parts once. Each one ends with what to work out for yourself.
Put your own figures in. Until our sell vs borrow calculator is live, the worksheet in part 1 and our safe home budget calculator do the same sums.
Use the checklist at the end before you sell any shares.

Part 1

Sell more or borrow more

Sell more, borrow less

The EMI is small. Less cash is left if salary stops.

Sell less, borrow more

More cash stays with you. The EMI is bigger.

This guide finds the point in between that fits your figures.

Four numbers to check for each road

Number	What it tells you
Loan	What the bank will fund. For a loan above 75L, a bank lends at most 75% of the flat's value
EMI	What leaves your account every month for 20 years
EMI as % of take-home	Up to 35% is what we call safe. Banks will lend till all your EMIs touch about 50%
Months you can pay if salary stops	The cash you keep, divided by EMI plus home costs. This is the bad-year check

Example X1

Couple, 1.2 cr in shares, 3L take-home, 1.8 cr flat

Cash outside the loan: about 23L (stamp duty and registration at the rate on our safe-budget page, plus 5% for interiors). Bank's most: 1.35 cr. So the least they bring: about 68L.

	Sell all 1.2 cr	Sell 70L	Sell about 77Lthe fit
Loan	83L	1.33 cr	1.26 cr
EMI	about 69k	about 1.11L	about 1.05L
EMI as % of take-home	23%	37%	35%
Shares kept	0	50L	about 43L
Months they can pay if salary stops	0 from shares	about 28	about 24

Home costs taken as 70k a month. Only the shares are counted; add your other savings to every column.

Selling all gives the smallest EMI, but nothing from the shares is left for a bad year.
Selling 70L keeps the most cash, but the EMI is above 35%.
Selling about 77L brings the EMI to 35% and keeps about 24 months of cover.

Example X2

50L in shares, 2.5L take-home, 1.5 cr flat

Cash outside the loan: about 19L. Bank's most: 1.125 cr. So the least they bring: about 56L.

6L short

The shares alone fall about 6L short. That has to come from savings.

38%

At the full loan, the EMI is about 94k. That is 38% of take-home.

about 1.3 cr

A safe EMI here is 87.5k (35% of 2.5L). With 6 months of EMI and home costs kept aside (about 9L, at 60k home costs a month), the safe flat works out about 1.3 cr.

Example X3

Single, 4 cr in shares, 4L take-home, 3 cr flat

Cash outside the loan: about 38L. Bank's most: 2.25 cr. So the least he brings: about 1.13 cr.

	Sell enough to buy outright	Sell about 1.7 crEMI at 35%	Sell 1.13 cr (the least)
Loan	none	1.67 cr	2.25 cr
EMI	none	about 1.4L	about 1.88L
EMI as % of take-home	0%	35%	47%
Shares kept	about 62L	about 2.3 cr	about 2.87 cr
Months he can pay if salary stops	about 78	about 104	about 107

Home costs taken as 80k a month.

With this much in shares, every road covers years. The question changes from "can I pay" to "how much do I want to keep in one company's shares".
The shares he keeps are in the company that pays his salary. In a bad year, both can fall in the same month. For the bad-year check, count the kept shares at a lower price too.

Work out yours (until the calculator is live)

Shares, after tax. The amount you will have in your Indian account after selling and paying tax. Your CA gives you this figure.
Price of the flat from the cost sheet, all lines before registration.
Cash outside the loan. Stamp duty and registration from our stamp duty calculator, plus about 5% for interiors and moving.
The least you bring. 25% of the price (for a loan above 75L) plus step 3.
Pick a sale amount between step 4 and all your shares. Loan = price + step 3 − sale amount.
EMI. Loan in lakhs × the figure in the table.
EMI as % of take-home. Add any EMIs you already pay. Up to 35% is safe by our method.
Months if salary stops. Shares kept plus savings you can use, divided by (EMI + monthly home costs).

EMI per lakh of loan

Rate	15 years	20 years	25 years
7.5%	₹927	₹806	₹739
8%	₹956	₹836	₹772
8.5%	₹985	₹868	₹805
9%	₹1,014	₹900	₹839

Example: a 1.26 cr loan at 8% for 20 years is 126 × ₹836 = about ₹1.05L a month.

Do steps 5 to 8 for two or three sale amounts and put them side by side, as in the tables above.

Part 2

The cash the loan won't pay

Some costs sit outside the loan. These come from your own cash.

Item	How much	Where the figure comes from
Stamp duty and registration	A set % of the price in Karnataka	Our stamp duty calculator, for your price
Interiors and moving	About 5% of the price	Our safe-budget page; it is on no cost sheet
Other lines on the cost sheet	Varies	Ask your bank which lines it will fund. Maintenance deposit and club charges are the ones to ask about
6 months kept aside	6 × (EMI + home costs)	Our method, so one bad year doesn't force a sale

Take all of this out of the share money before you count what is left for the down payment.

In example X1about 23L before the 6 months about 33L with them

If the flat is under construction, ask the builder for the payment plan. You may pay rent and EMI together till possession. Count that in the months you keep aside.

Part 3

Your payout date, worked back

Start from the date the money is in your Indian account, and work back from the booking.

Budget fixedParts 1 and 2 done, with your own figures
Loan in-principleThe bank looks at your income and gives an amount in principle
Shortlist and checksRERA checked on the Karnataka RERA site, cost sheet line by line, builder's track record
Site visitsOnly the flats that pass step 3
Shares sold, money inSale, transfer to India, tax as your CA advises
BookingBooking amount paid, against a written receipt

Two things to settle with your CA

The tax on the sale, and the amount you will have after tax.
When to sell, given your vesting and payout dates.

A bank's loan check is also one more check on the project. That is one reason to take at least some loan.

RERA checked on the Karnataka RERA site. Not a legal title check. Please get title and the agreement checked by your own lawyer.

Before you sell any shares: the checklist

I know the least I have to bring: 25% of the price, plus stamp duty, registration and interiors.
I have worked out two or three sale amounts side by side.
My EMI, with any EMIs I already pay, is within 35% of take-home.
I know how many months I can pay if salary stops, with the kept shares counted at a lower price too.
I have kept 6 months of EMI and home costs aside.
My CA has told me the amount after tax, and when to sell.
I have a loan in-principle from the bank.
The project is checked on the Karnataka RERA site, and I have the full cost sheet.

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