Must Known facts about CERSAI charges on home loan
Updated: July 19, 2022
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.
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, 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.
CERSAI Registration Fees & Charges
| Nature of Transaction |
Fees Applicable (Excluding Taxes) |
| CERSAI information search |
INR 10 |
| Creation/modification of security interest |
INR 100 for a loan above INR 5 lakhs; INR 50 for a loan up to INR 5 lakhs |
| Securitisation/reconstruction of financial assets |
INR 500 |
| Satisfaction of securitisation/reconstruction of financial assets |
INR 50 |
| Assignment of Receivables |
INR 10 for assignment of receivables less than INR 5 lakhs; INR 100 assignment of receivables equal or more than INR 5 lakhs |
| AOR Registration between 0-10 days |
Normal Fees applicable |
| AOR Registration after 10 days and up to 20 days |
Normal Fees applicable + 10 times of the basic fee applicable |
| AOR Registration beyond 20 days |
Normal Fees applicable + 10 times of the basic fee applicable + Govt approval (condonation of delay) |
| Satisfaction of existing security interest |
NIL |
| Satisfaction of registration on realization of the receivables |
NIL |
How to do 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 login.
How does CERSAI Portal Help Homebuyers?
Using CERSAI search, homebuyers can make sure that their desired property is not being used as a 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:
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.
FAQ's
What is CERSAI Full Form?
The full form of CERSAI is Central Registry of Securitisation Asset Reconstruction and Security Interest of India.
Who owns CERSAI?
The Government of India, select public sector banks, and National Housing Banks are major shareholders of the CERSAI – holding up to 51% of the shares.
What is the CERSAI Act?
CERSAI act can refer to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It serves as the legal framework for creating and registering securities in the country.
Is CERSAI compulsory?
CERSAI registration is mandatory for all lenders or financial institutions. All of their security interests should be accounted for in the central registry. However, CERSAI registration is not mandatory for individual borrowers.
Which charges are to be registered with CERSAI?
CERSAI charges are imposed for security interest registrations. The charges vary as per the loan amount sanctioned against the property, and range from INR 50 to INR 100.
What is the penalty in CERSAI?
Assignment of Receivables (AOR) registration beyond 10 days and up to 20 days of the transaction can be done with an additional fee that is 10 times the normal fee. A delay of more than 20 days needs Government approval (condonation of delay) along with 10 times the normal fee.
What are the eligibility criteria for CERSAI?
To be eligible for CERSAI registration, the entity must:
- Confirm whether they are financial institution, bank, or NBFC
- Have a valid PAN number
- Meet RBI’s minimum capital adequacy requirements
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.