CERSAI: Full Form, Meaning, Login, Charges, Registration & Fees

Key Functions and Objectives of CERSAI

The primary objective of CERSAI charges is to promote accountability and transparency in the Indian financial system. Some key functions and objectives of CERSAI include the following:

• Streamlines Loan Processing: CERSAI is a centralised platform to record interest in securities, where lending institutions can manage and track their assets. Hence, it simplifies the loan procedure and makes it more efficient.
• Prevents Fraudulent Activities: CERSAI keeps a record of all reconstruction, securitisation, and security interest activities, preventing fraudulent activities like benami transactions, multiple financing, etc. 
• Reduces the Risk of Litigation: CERSAI minimises the risk of litigation for loan providers by providing them with a transparent and clear record of all reconstructions, securitisations, and transactions in security interest. 
• Enhances the Process of Due Diligence: With CERSAI, lenders can conduct due diligence on loan applicants, reducing the default risk and improving the quality of loans. 
• Promotes Collaboration: CERSAI promotes collaboration between loan companies by giving them a platform where they can work together and share information on security interest transactions and asset reconstructions. It simplifies the process of CERSAI registration charges as well. 
• Protects Creditors’ Rights: The platform protects the creditors’ rights by recording and protecting their securities interests according to the law. 

Also, Read: Tips To Increase Your Home Loan Eligibility

Who Owns CERSAI?

CERSAI is a government entity created under the Companies Act 2013. In 2011, the Finance Minister announced the decision to form a centralised registry for equitable mortgages in his budget speech. The central government, public sector banks, and National Housing Bank own the CERSAI. The central government holds a 51% stake, while the remaining 49% belongs to the NHB and other banks in the consortium, including Punjab National Bank, Bank of Baroda, and State Bank of India. 

What is the CERSAI search?

CERSAI search is an online search through the CERSAI portal, aiming to avoid fraudulent activities by using the same property as collateral for multiple loans. A CERSAI search displays details about a property, using which one can check if it has already been mortgaged against a loan. Follow these steps to conduct an online CERSAI search: 

• Visit the CERSAI portal and log in using the username and password.
• Click on 'Public Search' at the top of the home page.
• Choose the type of search you want to conduct.
• Enter the required details and captcha, and click 'Submit' to get the details.

When conducting a CERSAI search, you will have the option to perform three types of searches. These include the following:

1. Asset-Based Search: It allows the user to search for details about an asset by essential information, including its address, pin code, and survey number.
2. AOR-Based Search: This CERSAI search is available to authorised individuals only who need intricate details about a project.
3. Debtor-Based Search: It provides details about a property that is already mortgaged against a loan from a financial institution.

How to Do CERSAI Login?

Follow these steps to log in with the CERSAI:

• Visit the CERSAI portal at www.cersai.org.in.
• On the home page, click the login button at the top right corner.
• Enter your username and password in the appropriate fields.
• Double-check the credentials and click on the Submit button.
• Reach the dashboard where various CERSAI services and features are available.

Also, Read: Features and Benefits of Loan Against Property

Entity Registration on CERSAI

Follow these steps for entity registration on CERSAI: 

• Obtain a PAN number from the Income Tax Department.
• Check the RBI’s eligibility criteria for entity registration and ensure their fulfilment.
• Collect the necessary documents, including a memorandum of association, certificate of incorporation, address proof, identity proof, articles of association, certification of business commencement, audited balance sheet, profit and loss statement, etc.
• Fill out the CERSAI application form available on the website.
• Pay the CERSAI fee based on the entity type and security amount.
• Submit the application with the necessary documents and receive an acknowledgement of success.
• Wait for CERSAI approval.
• Once approved, log in to the CERSAI website and avail of the available services.

CERSAI Charges on a Home Loan

When applying for a Home Loan, aspiring borrowers must take a few steps, such as checking the eligibility criteria, preparing the required documents, and filling out the details correctly. At the same time, they must also look up the Home Loan CERSAI charges. According to the Indian government rules and regulations, all banks, lenders, and financial institutions must register with the CERSAI portal to record every security interest within a month. For that, a borrower must pay a small CERSAI fee when taking a loan. They must pay Rs 50 on loans up to Rs 5 Lakh and Rs 100 for loans above Rs 5 Lakh (GST extra). 

CERSAI Charges on a Loan Against Property

The lender checks the property's authenticity when someone applies for a Loan Against Property. To make sure the property is liability-free, the lender has to check the CERSAI records. A fee is required to be paid for this. The lender takes this fee from the loan applicant. The applicant has to pay the CERSAI fees even if the loan application gets rejected.

Also, Read: What is Mortgage Loan? Meaning & How to Apply in India

CERSAI Registration Charges & Fees

Different types of transactions require different CERSAI charges to be paid. Here is a breakdown of the involved fees and charges:

Transaction Type	CERSAI Charges (Excluding Taxes)
CERSAI Search	Rs 10
Creating or modifying a security interest	Rs 50 for loans up to Rs 5 Lakh Rs 100 for loans above Rs 5 Lakh
Securitisation or Reconstruction of Financial Assets	Rs 500
Satisfaction of Securitisation or Reconstruction of Financial Assets	Rs 50
Assignment of Receivables	Rs 10 for assignments worth up to Rs 5 Lakh Rs 100 for assignments worth over Rs 5 Lakh

Please note that these CERSAI charges may vary for specific transactions depending on circumstances. To find the latest and particular charges, you can visit the CERSAI website or call them directly.

How Does the CERSAI Portal Help Homebuyers?

The CERSAI portal helps a homebuyer in the following ways:

• Verify if the property they are planning to buy is liability-free.
• Confirm that their desired property is not pledged as collateral against a loan or mortgage.
• Protection against fraudulent activities or false promises.
• Save money and hassle of cumbersome legal procedures.
• Access valuable data about a property related to mortgages and encumbrances.

How is the CERSAI Database Updated?

Any time a lending institution provides a loan to a borrower against a property as security, it must submit the transaction details on the CERSAI portal. The process is termed as 'registration of charges'. The purpose of CERSAI registration charges is to create a public database about all encumbrances on real estate properties. It is mandatory for lenders to submit each transaction’s details within 30 days of the mortgage agreement, failing which attracts monetary penalties. They must also update the database when a borrower pays off their loan and removes the mortgage lien from their property. Therefore, it is the loan companies' responsibility to maintain and update the CERSAI database. So, before applying for a home or mortgage loan, one must access the CERSAI portal to make informed decisions and avoid legal issues.

Also, Read: Mortgage Loan Originator: Overview, What It Does, Types

Conclusion

All banks, lenders, and financial institutions must register their asset reconstruction and securitisation transactions on the CERSAI portals. It does not apply to Home Loans alone but to different types of mortgages in India. The entire process makes mortgages more reliable and transparent. Lenders go through the process before approving loans, while borrowers can look at the property’s previous records to identify its liabilities. 

Frequently Asked Questions

1. What is CERSAI full form?

The full form of CERSAI is The Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

2. Are CERSAI charges mandatory for all loans in India?

CERSAI charges are mandatory for secured mortgage loans only. Unsecured loans in India are not subject to CERSAI registration charges.

3. Is CERSAI a government organisation?

CERSAI is an Indian government company licensed under section 8 of the Companies Act, 2013.

4. How are CERSAI charges calculated?

The CERSAI charges are calculated based on the mortgage loan amount sanctioned against the property. Currently, it is Rs 50 for loans up to Rs 5 Lakh and Rs 100 for loans above Rs 5 Lakh.

5. Can CERSAI charges be waived or reduced?

CERSAI charges are applicable in all searches. However, some lending institutions may not charge these fees from their borrowers as a part of special offers.

Disclaimer: The information provided here regarding CERSAI charges is intended for general understanding and informational purposes only. It is not exhaustive and may not cover all specific situations or scenarios related to CERSAI charges.