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Must Known facts about CERSAI charges on home loan

Updated: July 19, 2022
Must Known facts about CERSAI charges on home loan

Owning a home today is a large investment. It involves saving for years and a healthy income. Home loans help us fulfill this dream more easily. However, home loans come with a package of charges and fees, and one should be aware of them. Home loan lenders charge us the interest for the loan that is borrowed. Apart from that, lenders also levy stamp duty charges, EMI bounce charges, and another lesser-known charge called CERSAI.

What is CERSAI?

CERSAI is the Central Registry of Securitisation Asset Reconstruction and Security Interest of India as per the Section 8, the Companies Act of 2013. As per this act, the Government of India, select public sector banks, and National Housing Banks serve as 51% shareholders in CERSAI. CERSAI was created to check fraudulent activities that are related to home loans. CERSAI filters illegal practices of taking out multiple loans against the same asset or property from different lenders. The Government initiated CERSAI charges for home loans to protect the interests of the lenders while providing home loans against property.

CERSAI lets lenders conduct a check through CERSAI’s official website to determine whether the selected property is not hindered by security interest created by another lender. This means that home finance lenders can use the CERSAI website to make sure that a property which has been proposed for a mortgage loan is not already under mortgage through some other lender. Lenders are required to register details of all the security interests they create on the website within a period of 30 days.

The CERSAI website can be accessed online by anyone by paying a certain fee. Lenders can gather information on properties to ensure that there is no past security interest in the property by a different lender, that is the property is free of all mortgage claims. This process is completed prior to sanctioning loans to borrowers. This process is highly beneficial as it ensures that the property being pledged will not have any legal disputes over claims in future. Borrowers can be sure that the property is freed from any liability or loan which could have been provided by another lender.

What are CERSAI Charges for home loan?

Let us understand the facts about CERSAI charges on home loans. Home loan borrowers of SMFG Grihashakti need to pay a nominal CERSAI charge to the extent of INR 110 plus service tax for a loan amount upto INR 500,000, or INR 210 plus service tax for home loans above INR 500,000.

As we know by now that CERSAI maintains a thorough registration of multiple types of mortgages in India. CERSAI registration is carried out on the official CERSAI website by clicking on “online registration” section and filling up the form. Thereafter, the charge has to be paid and the necessary documents have to be uploaded. Then you have to track the progress online.

As per directives by the Government of India, all financers need to register information with regard to the security interests that they have created in relation to the property chosen. Registration needs to be completed within a period of 30 days of the creation of security interests of a property. This is also often the reason why lenders may take upto a month to complete property evaluation - they would like to make sure that the pledged property is not already mortgaged through some other lender.

Must Read : Home Loan Benefits For Government Employees

Objectives of CERSAI

The objective of CERSAI is to eliminate fraudulent and illegal activities related to taking home loans by pledging the same property as mortgage to multiple lenders at the same time. CERSAI was launched to maintain a centralized platform of the registry of mortgages. It records relevant information on loans on a single property. CERSAI aims at deterring all kinds of illegal practices, by enabling lenders and borrowers access to a thorough background check through CERSAI’s official website to verify whether the selected property has been mortgaged with another lender or not.

The CERSAI and Credit Information Bureau India Limited (CIBIL) have joined hands together in order to make the borrowing and lending processes more streamlined to users. This tie-up has eased the process for lenders in making decisions easily.

We can take a look at SMFG Grihashakti’s home loan benefits and features.

SMFG Grihashakti’s home loan

SMFG Grihashakti is a home loan provider in India offering a plethora of benefits. Grihashakti’s home loan is provided at competitive rates, depending on the applicant’s profile and our policy at the time of loan application. You can enjoy lower interest rates, which translates to a lower EMI. You can also enjoy the flexibility of extending your repayment tenure to 30 years*. Depending on your eligibility and our policy, you can get a home loan for up to 90%* of your property value.

SMFG Grihashakti is happy to offer the below stated benefits for home borrowers:

1. Online application:

Your loan application with SMFG Grihashakti can be totally paperless. You can apply from the comfort of sitting at your home. Online loan application is time efficient. All you need to do is to follow self-explanatory steps and apply.

2. Minimum home loan documents:

SMFG Grihashakti’s loan documents are simple. The list of documents is segregated as per eligibility for your convenience.

Must Read : Minimum CIBIL Score Required for Home Loan

3. Home loan calculators

SMFG Grihashakti offers a home loan eligibility calculator. This tool gives you a fair estimate of the maximum home loan amount you may be able to get. We also offer a home loan EMI calculator that gives you a near accurate estimate of your monthly outgo, thereby enabling you to choose a suitable tenure so that the EMI can fit within your budget.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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