CERSAI Charges

CERSAI - All homebuyers need to know

CERSAI Charges on Home Loan

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CERSAI is India's digital security interest registry. CERSAI’s full form is Central Registry of Securitization Asset Reconstruction and Security Interest of India. It was established in 2011, under Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The Indian government introduced CERSAI to curb the rising number of property-related frauds.

What is CERSAI?

CERSAI is a prevention mechanism against loan fraud in India. People mortgage the same asset to avail of loans from different banks simultaneously. They use the original property documents to take a loan from a bank and use the certified photocopies of the exact property to avail loans from other banks.

CERSAI acts as the registry of mortgaged properties and the banks can verify whether a property is already mortgaged when one applies for a loan. The establishment of CERSAI has significantly minimised loan frauds using the same property as collateral for different loans.

Before CERSAI, the financial institutions and the buyers were unable to know whether a property was mortgaged or not. Now, both the public and the financial institutions can access the CERSAI portal and check the details related to equitable mortgages.

Who is the Owner of CERSAI?

CERSAI is a government company constituted under the Companies Act 2013 and owned by Central Government, National Housing Bank, and Public Sector Banks. The Central Government owns the majority shares (51 percent stake), whereas the rest is owned by the consortium of banks and the NHB.

Entity Registration on CERSAI

The CERSAI registration portal is hassle-free and easy to handle. To access the CERSAI Portal, the user must have the ‘Digital Signature Certificate.’

Follow the step-by-step process to register on the CERSAI portal.

  • Step 1:Visit the CERSAI home page.

  • Step 2:For CERSAI registration, click on the ‘Entity Registration’ tab.

  • Step 3:A new window showing Entity Registration will open.

  • Step 4:From the drop-down list, select the Mode of Entity Registration.

  • Step 5:If you select ‘CKYC’, you have to fill in details like CKYC number, date of birth, etc.

  • Step 6:If you select ‘Digital Signature’, you have to fill in information like employee ID, username, email, mobile number, date of birth, etc.

  • Step 7:Enter the CAPTCHA code and click on ‘Submit’.

What is CERSAI Search?

To avoid loan fraud using the same property as collateral, you can conduct a CERSAI search. The CERSAI details will display the property details and anyone can check whether this property has been mortgaged against a loan earlier.

Follow the steps to conduct a CERSAI search.

  • Step 1: Log in to the CERSAI portal.

  • Step 2: Click on ‘Public Search’ on the home page.

  • Step 3: You can search based on asset, debtor, or AOR (Authorised Organisational Representative).

Key Functions and Objectives of CERSAI

Here are the key functions and objectives of CERSAI for you to check out.

  • Being the central registry of collaterals or mortgages, CERSAI contains the details of the property used as collateral, the financial institution’s name, and the borrower’s details.

  • All types of mortgages used across India are registered under CERSAI.

  • After 2012, CERSAI started registering the security interests which are created through factoring or account receivables.

  • After 2016, CERSAI started registering the security interests created on movable and intangible assets such as hypothecation, book debt, and accounts receivables.

  • CERSAI portal allows the lenders to check the collateral provided along with the loan application is not used as collateral for another loan by a different bank.

  • Using the portal, the homebuyers too can check whether the property is liability-free.

  • Even if the property is used as collateral somewhere else, the lenders can estimate if the value of the collateral is sufficient for the extension of another loan.

  • The lenders can register the transactions of Asset reconstruction and Securitisation in CERSAI.

How Does the CERSAI Portal Help Homebuyers?

  • Any homebuyer can verify if the property they buy is liability-free using CERSAI.

  • They can confirm that their chosen property is not used as collateral for a loan.

  • The homebuyers will not be given false promises and won’t be subjected to fraudulent practices.

  • A CERSAI search will save homebuyers money and save them from tiring legal hassles in the future.

CERSAI Registration Charges

CERSAI registration charges vary from Rs. 50 to Rs. 100. The CERSAI charge is dependent on the loan amount disbursed against the property.

Sl No:

Type of Transaction

Fees (Excluding Tax)

1

For a CERSAI search

Rs. 10

2

Creation or modification of security interest

  • Rs. 50, for loan upto Rs. 5 Lakhs.

  • Rs. 100, for a loan above Rs. 5 Lakhs.

3

Reconstruction or securitisation of financial assets

Rs. 500

4

Satisfaction of securitisation or reconstruction of financial assets

Rs. 50

5

Assignment of receivables

  • Rs.10, for assignment of receivables of less than Rs. 5 Lakhs.

  • Rs. 100, for assignment of receivables of Rs. 5 Lakhs and above.

6

Condonation of delay up to 30 days for assignment of receivables

Ten times of the basic fee, as applicable.

7

Satisfaction of any existing security interest

Nil

8

Satisfaction of registration on realisation of the receivables

Nil

How is the CERSAI Database Maintained and Updated?

The CERSAI database is updated with the help of all the financial institutions in India. Whenever a financial institution in India approves a loan against property and disburses the amount, they have to update the details about a disbursed loan on the CERSAI database within 30 days of loan finalisation. This process is called ‘Registration of Charges’ and it will help maintain a public database for encumbrances on properties.

The financial institution is penalised monetarily by the Reserve Bank of India (RBI) if they fail to update the CERSAI database on time.

What are CERSAI Charges on a Home Loan?

The CERSAI charges on a house loan are officially termed as ‘Memorandum of the Deposit of Deed Fee’. When someone applies for a loan against a property, the lender examines the property's authenticity.

To ensure the property is liability-free, they have to check the records from the CERSAI database. A fee is to be paid for this purpose, and in turn, the lender levies it from the home loan seeker. Even if the lender denies the home loan application, the applicant must pay the CERSAI charges mandatorily.

FAQs on CERSAI Charges on Home Loan

  • ✔️Why is CERSAI registration required?

    The Indian government introduced CERSAI in 2011, under Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) to curb the rising number of property-related frauds. CERSAI is the registry of mortgaged properties and the banks can verify whether a property is already mortgaged when one applies for a loan.

  • ✔️What is CERSAI portal 2.0?

    CERSAI 2.0 is the upgraded version of CERSAI portal. It is used for the registration of entities of securitization by banks.

  • ✔️What is the full form of CERSAI?

    CERSAI’s full form is Central Registry of Securitization Asset Reconstruction and Security Interest of India.

  • ✔️Is CERSAI charges levied one time?

    No, you have to pay Rs. 10 every time you conduct a CERSAI search. For a loan of up to Rs 5 Lakhs, you have to pay Rs. 50 as CERSAI charge, and the loans above Rs. 5 Lakhs attract a fee of Rs. 100 for original filing or modification.

  • ✔️What is the fee to get property mortgage related information on the CERSAI database?

    To get property mortgage related information, you have to conduct a CERSAI search. For each search, you have to pay Rs. 10 as CERSAI charge.  

  • ✔️Are CERSAI charges refundable?

    No, CERSAI charges are not refunded if the loan application is rejected by the lender.

  • ✔️What is the threshold warning limit in CERSAI?

    Depending upon the projected number of transactions, entities will set up a threshold limit of balance in their accounts in CERSAI. If the balance reaches below the threshold, the system will notify them. Until the account balance becomes zero, the transaction will be allowed.

  • ✔️Can a home loan borrower search property mortgage-related information on the CERSAI database?

    Anyone from the public can search property mortgage-related information on the CERSAI database.

  • ✔️What are the contact details of CERSAI?

    You can reach out to CERSAI customer care using the phone numbers 011-23740171/23740172/23740173.