What is CERSAI? Full Form, Login, Charges and Registration Process

Owning a home today is a large investment. It involves saving for years and a healthy income. Home loans help us fulfil this dream more easily. However, home loans come with a package of charges, 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 lesser-known CERSAI charges on home loans.

This guide will take you through the concept of CERSAI, its objectives and features, registration process, and the CERSAI charges on home loans.

Table of Contents

1. What Is CERSAI?
2. What Are CERSAI Charges on Home Loans?
3. Objectives of CERSAI
4. Features of CERSAI
5. How to Register with CERSAI?
6. CERSAI Registration Process
7. CERSAI Registration Charges
8. How to Do a CERSAI Login?
9. How Does the CERSAI Portal Help Homebuyers?
10. SMFG Grihashakti’s Home Loan
11. Frequently Asked Questions (FAQs)

What Is CERSAI?

The full form of CERSAI is the Central Registry of Securitisation Asset Reconstruction and Security Interest of India as per Section 8, of the Companies Act of 2013. As per this act, the Government of India, select public sector lending institutions, 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 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 before 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 on Home Loans?

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 60 for a loan amount up to INR 500,000 (for an original filing and modification), or INR 110 plus service tax for home loans above INR 500,000 (for an original filing and modification) . As we know by now 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 the “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 about the security interests that they have created concerning the property chosen. Registration needs to be completed within 30 days of the creation of security interests of a property. This is also often the reason why lenders may take up to a month to complete property evaluation - they would like to make sure that the pledged property is not already mortgaged through some other lender.

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 a mortgage to multiple lenders at the same time. CERSAI was launched to maintain a centralized platform for 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 to make the borrowing and lending processes more streamlined for users. This tie-up has eased the process for lenders to make decisions easily.

Features of CERSAI

Some notable features of CERSAI are:

Records Security Interests 
CERSAI enables lending and financial institutions to register security interests in movable and immovable properties. This registration is crucial for establishing a legal claim on these assets.

Ensures Due Diligence 
CERSAI offers a search feature that allows you to check the status of properties with registered security interests. This tool is useful when performing due diligence for lending and other financial transactions.

Improves Loan Processing Efficiency 
By maintaining a single registry of mortgages, CERSAI makes it easier for lenders to track and manage their assets and improves loan processing efficiency.

Helps in Securitisation and Reconstruction 
CERSAI provides lenders with a platform to access information and work on asset reconstruction and security interest transactions.

How to Register With CERSAI?

Here are the steps involved in registering with CERSAI –

• Visit the official CERSAI website.
• Navigate to ‘Entity Registration’.
• You will see a drop-down menu for ‘Mode of Entity Registration’ with 2 options - CKYC and Digital Signature. For CKYC, you have to fill in details like your date of birth and CKYC number.
• For Digital Signature, you have to fill in details like your employee ID, name, email, date of birth, and so on.
• Complete the CAPTCHA and click on ‘Submit’.

CERSAI Registration Process

The specific steps involved in the CERSAI Registration  process are as follows:

• Get your PAN from the Income Tax Department.
• Ensure that you meet the eligibility criteria that is set by the RBI. Depending on what type of entity you are, this includes being a financial institution, having a valid PAN number, or meeting the minimum requirements for capital adequacy.
• Gather all the documents required such as: Certificate of incorporation, Proof of address, Memorandum of association, Articles of association, Audited balance sheet and profit & loss statement, Certificate of commencement of business, and Identity proof of directors and shareholders.
• Fill in the CERSAI application form which is available on the CERSAI website.
• Pay the registration fees which depend on the type of entity and the amount of the security to be registered. Once you pay, submit the application along with the relevant documents.
• Upon successful submission, you will receive an acknowledgement receipt. Once you get the approval from CERSAI, you can log in to the portal and use the services provided.

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CERSAI Registration Charges

The following table tells you what are CERSAI’s charges applicable for different transactions:

How to Do a CERSAI Login?

Here is a step-by-step guide on how to login to the CERSAI portal -

• Visit the official CERSAI website.
• You will find the ‘Login’ button on the top right corner of the home page.
• Click on Login and enter your Login ID and password in the respective fields.
• Enter the CAPTCHA correctly and proceed to log in.

How Does the CERSAI Portal Help Homebuyers?

Using CERSAI search, homebuyers can make sure that their desired property is not being used as collateral for a loan. This can save them not only money and time but also being involved in legal proceedings in the future. Homebuyers can realise their dream of owning a property without the risk of being subjected to fraudulent practices.

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:

• Online application

Your loan application with SMFG Grihashakti can be 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.

• Minimum home loan documents

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

• 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.