Down payment is an initial payment made when buying something for a credit.
A down payment is made mostly when one is buying a car/bike or a house. It is non-refundable and paid upfront, while the rest is paid via loan from the bank or any financial institution, more like an advance payment.
It helps the buyer to obtain ownership of the item/property helping them to reduce the monthly payment through mortgage principal and interest.
Higher down payment can get a lower interest rate assigned. A down payment plays a crucial role when one is buying a home.